To be pedantic, and just to add to the debate, only extension wiring officially requires the 3rd wire (bell shunt) to be connected in order to make the phone ring. The Master Socket only uses 2 wires, as it has a ringing capacitor in-situ.
In practice, most modern phones don't require this 3rd wire, and as Eric has pointed out,
if it is connected it only serves to act as an aerial for 'noise interference', as it is in effect a single wire being introduced into the circuit, rather than being a 'twisted pair of wires', which as we know acts as a barrier against 'noise'.
Also, even the older style phones that used to rely upon the 3rd wire being connected, can utilise the dongle micro-filter as they have an in-built ringing capacitor. This allows them full usage of the landline phone, and the chance to maximise DSL speeds by the removal of the 3rd wire.
Hope this makes sense.