Hi Bill
The theory behind the extra wire is to try and prevent damage to the starter by "kickbacks". The lightweight Skytecs have suffered these.
The theory is that as the engine starts, and you release the starter switch, the starter self-generates enough current to keep the motor solenoid closed for a short period of time. This leaves the starter engaged and somehow then this loads the starter case to break.
By adding the extra wire you prevent any such starter generated current getting to the starter solenoid, and it therefore disengages immediately. To see how this works you need to see the diagram on the internal mechanism of the starter relay, and the I terminal.
I say "theory". Skytec disagree with it, and indeed query the Vans diagram on their website. We fitted it, since for about 10mins work and <$1 hardware, it might prevent a problem with no appreciable downside.
The other instance it is useful is a "lightweight" electrical system without a master relay. By adding a "start master switch" in the extra line you create a more fault tolerant system i.e. a single fault that could lead to starter engagement can be prevented (start master off) or stopped (start master on) - which we'll be using in the RV-3. B&C illustrate this in their "Aerobatic Aircraft" wiring diagram for the SD-8 (albeit we are using the Skytec XLT).