Yes you need to power the Voodoo5 externally. It's not really a downfall.
The GeForce 256 sucked so much juice it caused instability in alot of motherboards becuase they weren't equipped to supply that much power through an AGP slot.
3dfx just avoids this potential problem and draws none, they add an extra power cable.
I happen to have a board that is notoriously bad with GF256's and for one am quite glad 3dfx chose this route, kills a chance of instability, and puts less stress on your mobo.