It's hard not to have some sort of review process if you want to be able to fire someone. If anyone challenges their dismissal for performance reasons, you'll want a record of the "conversations" (1) you had. This is why a lot of review processes include some sort of sign-off by the parties involved.
(1) Scare quotes around "conversations" because I've never seen management approach an underperforming employee and then realize that they had a big part in that. Conversations tend to be more two-way than that.
In our situation, which is a relatively small company, it's used to keep people energized, focused and well... happy.
Without it, we had regular team meetings where people talked about frustrations they had (and it exploded at times).
I don't think having it around as way to fire someone is the right approach.
I'm a huge fan of more informal one-on-one meetings. To the point where I will consider a move if I'm not getting enough time with my management. I don't consider those "performance reviews" though.
(1) Scare quotes around "conversations" because I've never seen management approach an underperforming employee and then realize that they had a big part in that. Conversations tend to be more two-way than that.