The minimum equipment for night flying includes an AH and DG as you can and do encounter IMC-like conditions.
Yes, I've practiced needle, ball and airspeed, but the IFR accident record in the US shows that vacuum failures result in a number of loss of control accidents every year.
Me, I would not choose to be over water without said equipment unless land was in sight ahead.
I very much like to have enough height to be within gliding distance of shore. It also gives you a bit of time to put out a Mayday or correct mistakes.