The line that comes off the accordian hose is part of the idle up circuit for when the car is at idle and you turn the wheels. It allows the engine to maintain proper idle speed when the PS pump is at max load (and therefore max drag on the engine).
Its not 100% needed to make the car run and does NOT affect how the PS system works. If there is a REALLY good reason why you cant, or dont want to hook it up, it wont hurt anything, but make sure you plug it all off.
The valve on my 89 has a broken nipple on it, and there is no way to connect a hose to it (without replacing it, which I just havent done yet) so I have mine plugged off for right now, and I dont notice it enough for it to be a problem.
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