Yes, you must update your site
It is difficult to overstress the importance of regular site updates.
If your site never changes, you're not giving people a reason to visit you again ... and they won't. Worse still, search engines think in a very similar way, so your competitors who update more frequently will be attracting all the attention.
Oh, and remember those web sites that say "Last updated: Feb 12th 2003"?...
...nuff said!
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