No, you can delete it, heres the fix...
Log Folder
Kaf's fix:
Right-click on WoW shortcut icon on desktop and select "Properties" from menu. Copy the text from "Target" box and paste into "Start in" box. Finally, edit out the program name (WoW.exe)
For example:
Target: "C:\Program Files\World of Warcraft\WoW.exe"
Start in: "C:\Program Files\World of Warcraft"
Secondary Fix:
This is basically making a new shortcut for World of Warcraft from WoW.exe in your main World of Warcraft directory.
1) Delete your desktop/start menu shortcut that you're using to run World of Warcraft.
2) Delete your Log folder from your desktop
3) Create a shortcut to WoW.exe from your World of Warcraft directory by right clicking WoW.exe and selecting it from the menu. (For those of you who don't know where that is, it's default installed into C:\Program Files\World of Warcraft\WoW.exe)
4) Put the shortcut onto your desktop and run the game to the login screen and exit. Problem should be fixed.