Circumcision is not necessary, and don't let anyone talk you into it. I've read there are other techniques to stretch the foreskin...It takes a commitment though.
My foreskin's not as tight as yours, but I do have an issue with my frenulum. It's actually pretty tight, so when I retract my skin when hard, it doesn't want to go much past the head of my dick. Lately, I've been working on stretching it some while hard. I make sure it's good and lotioned and just retract my foreskin as much as possible(just so there's strain on the frenulum), and hold it for a bit. It's not very engrossing, so I can sit and watch TV while I work on it. I've already noticed a difference in how far my skin'll retract.
Basically, just do some research and do what you feel is best for you.