It's important to know that if you want people to be able access a directory, the execute bit must be set on all of the parent directories for that particular user. For instance:
user1@host$ mkdir -p one/two
user1@host$ echo "hi" > one/two/readme
user1@host$ chmod 700 one
user1@host$ su user2
user2@host$ cd one/two
bash: cd: one/two: Permission denied
user2@host$ ls -al one/two/readme
ls: cannot access one/two/readme: Permission denied
user2@host$ cat one/two/readme
cat: one/two/readme: Permission denied
user2@host$ exit
user1@host$ chmod +x one
user1@host$ su user2
user2@host$ cat one/two/readme
hi
This mostly comes into play in things like web servers, where a user will want to present files to the populace in general (typically in ~/public_html for instance) but wants to keep the parent directory secure. There is no need or reason to set the read bit, unless you want your user to be able to execute a directory listing.