Hi gang.

Anyway, being in a trio-band ironically named Fail , the bassist keeps on going that the pick is an important thing and me, a person who uses his fingernail(s) to play the electric guitar, is doing it wrong.

Does it really matter in a long run if I don't use a pick? Because without holding the pick, I can switch from strumming and picking different strings in different order much better. [Example: Boston - More than a Feeling]

Hey, it's his problem that he don't like it.If you like to play so, then why not.
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This is really your call. Finger-picking opens up a whole bunch of possibilities, especially when playing folk styles or acoustic guitar. You can also get some pretty cool sounds out of your guitar that you wouldn't be able to with a pick.

On the downside, playing without a pcik can be much less precise. You often hit more strings than you intend. Additionally, shredding is more or less out of the question.

I played pickless until last summer, when I finally decided that I needed to learn to use picks. The transition was pretty painless, actually. So really, it's your call.
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Quote by Jackal58
JoHNNERz you sir are my hero of the moment.
well if depends on how you use it he. there is stuff you can't do properly with a pick and visa versa.

Little example : Jeff Beck If he can't play the guitar...
Quote by JoHNNERz
Additionally, shredding is more or less out of the question.

no it isn't. paco de lucia can shred pretty well without one

you tend to get a different tone with a pick rather than fingerpicking, but just do what comes naturally and you'll be fine
paco de lucia plays a flamenco guitar. Its posible but it s much more dificult than with the pick. Anyway like said before jeff beck can play both ways with the same precision.
Oh and pacos technique doesnt have anything to do with any convencional style
Mark Knopfler of Dire Straits is a non-pick player. Listen to "Sultans Of Swing." There's no shredding, but he stil gets some fairly fast stuff going. It also gives it a nice subdued tone.