Do I have to do a dist-upgrade at some point to stay with testing?
You should be doing dist-upgrades at least once in a while if you're
tracking testing or unstable. I do upgrade and dist-upgrade almost every
day on my testing machines. I seldom have problems.
Minor point I have made on the list before. Running dist-upgrade
especially on testing and unstable can be VERY dangerous if you are not
tracking the development of Debian. Look through the archives of this
list alone to see the number of people that come crying after
performing that operation and walk away not liking Debian. Hans is
100% correct that it does need to be run once in a while to get the
"good stuff". I strongly suggest first running apt-get upgrade then
doing an apt-get -u dist-upgrade and see what packages it wants to
pull. Possibly even research and make sure they don't have massive
crippling bugs filed against them. ; )