Do I need Content-Type: application/octet-stream for file download?

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Hence:

Content-Type: application/octet-stream
Content-Disposition: attachment; filename="picture.png"

Means "I don't know what the hell this is. Please save it as a file, preferably named picture.png".

Content-Type: image/png
Content-Disposition: attachment; filename="picture.png"

Means "This is a PNG image. Please save it as a file, preferably named picture.png".

Content-Type: image/png
Content-Disposition: inline; filename="picture.png"

Means "This is a PNG image. Please display it unless you don't know how to display PNG images. Otherwise, or if the user chooses to save it, we recommend the name picture.png for the file you save it as".

Of those browsers that recognise inline some would always use it, while others would use it if the user had selected "save link as" but not if they'd selected "save" while viewing (or at least IE used to be like that, it may have changed some years ago).