Hey Sparky,
This little guy is called a "vacuum switching valve" and, assuming you have a 72 model year, is one of six components of the Improved Combustion System (aka - emissions control components). The other components are a small black computer box (the speed marker) located under the dash on the firewall inside on the driver's side, a modified carburetor, a modified distributor with a vacuum retard, and a speed detector (associated with the speedometer). If the speed marker or the speed detector stop working, the vacuum switching valve will sit there in its "off" position and vacuum from the manifold and carburetor riser will theoretically not do anything. When it’s turned on, and the vehicle is traveling above 14 mph, the vacuum pulls vapors from a vapor storage case and into the port below the carburetor to be burned during ignition. Below 14 mph the vacuum switching valve activates the diaphragm on the carburetor allowing the throttle to fully close. Without the vacuum to that diaphragm the throttle will stay open and the engine will race.
That being said, the device does do things, all of which are related to emissions control. However, if it has been inoperative for a while, the previous owner probably tuned the engine to run smoothly without the valve by disabling the carburetor diaphragm linkage, or, as I did, routed the hoses to pull a vacuum on the carburetor diaphragm full time to allow the throttle to close and prevent the engine from racing regardless of the speed.
If yours is working, when you engage the clutch at highway speed, your engine will not return to idle speed until it falls below about 14 MPH. It's quite noticeable and rather annoying. If it's not working, when you depress the clutch and take your foot off the accelerator, your engine will return to idle regardless of your speed.
The bottom line is that your Cruiser can run fine without it so long as you make allowances for those components that are affected by the valve under normal working conditions. Regarding vacuum leaks, on a 72 model, there are only two ports that need to be blocked off: one on top of the manifold forward of the carb and the other just below the base of the carburetor at about the same level as the vacuum switching valve and pointing towards it.
Hope that helps.