It's not dumb. It's a part that should be there.
If you stall the bike in traffic, you'll wish you had the diode. So, you can just pull in the clutch and e-start very quickly while still in gear. Rather than hunting for neutral first while the cars buzz around you and honk to increase the annoyance factor.
IIRC, the diode is just a ground path from the solenoid to the neutral switch preventing the neutal light to glow whenever you pull the clutch.
If it's missing, you will still be able to use the e-starter by pulling the clutch. The clutch switch sits directly in the start button/solenoid circuit while the diode is coupling in the neutral switch as a second ground path blocking the neutral light from ground through the clutch switch. (hard to explain without a diagram at hand)
Untold: Replacing this diode will let you e-start the bike in neutral without pulling the clutch.
Diode missing: Starter will only work with the clutch pulled
Diode in place: Starter will work with the clutch pulled OR in neutral (or both)
Diode reversed: Starter will only work with the clutch pulled, neutral light will shine whenever you pull the clutch
Diode substituted with a piece of wire: Bike will start with clutch pulled OR in neutral, neutral light will shine whenever you pull the clutch