I am somewhat confused about the following statement: $$f \in L^p \iff |f|^p \in L^1$$
Why do we need the $|\cdot|$ if we have it in $$ ||f ||_p := \bigg(\int |f| ^p\bigg)^{\frac 1 p}$$ anyway?
What breaks down if we drop $|\cdot|$ and write $$f \in L^p \iff f^p \in L^1$$
The absolute value is not necessary for the definition of $L^p$ as elements such that $f^p$ is integrable. The reason is that a function is Lebesgue integrable iff its absolute value is integrable.
Now, when you are going to define $||f||_p$ you want it to be a norm. If you don't put the absolute value in the definition you are not going to get a norm.