Why should Exchange 2003 SCOM 2007 agents have the Agent Proxy setting checked?

I have a SCOM 2007  Exchange 2003 question that I cant find an answer to.   I see in multiple walkthroughs that Allow this agent to act as a proxy and discover managed objects on other computers SCOM 2007 setting HAS to be enabled on all Exchange 2003 managed agents but I dont see anywhere WHY this is required.  Not the help files, not the google, not the experts-exchange&Im about to go to Barnes and Noble and buy a book on SCOM but before I did that, I thought Id ask the 'Experts'.

According to:
Enable Agent Proxy configuration on all Exchange Servers identified from the groups. This is in the Administration node under Administration -> Device Management -> Agent Managed. Right-click on each domain controller, select Properties, then the Security tab, and check the box to Allow this agent to act as a proxy and discover managed objects on other computers. This has to be done for EVERY EXCHANGE SERVER, even if the server is added after your initial configuration of OpsMgr.

And in this article, it associates this setting to enabling Exchange Topology Discovery:
Enable Agent Proxy configuration on all managed Exchange servers. In the Administration pane, under Administration, Device Management, Agent Managed, right-click on each Exchange server, select Properties, then the Security tab (Figure 1), and check the box Allow this agent to act as a proxy and discover managed objects on other computers. This step will also make exchange cluster instances to appear in the Agentless Managed section.

Im looking at this because I have an environment that has disabled all Mail Flow SCOM 2007 monitoring of their exchange 2003 servers because of the deluge of meaningless notifications they were receiving and this little setting is NOT currently applied to their exchange server SCOM agent settings.  So before I just toggle it on to see if it has some connection with the mail flow notification deluge, Im looking for some reason for the setting in the first place&
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Don't know if this'll clarify for you but enabling the proxy setting lets that system collect information about other systems.  When you're talking something like Exchange, Citrix, Active Directory or a clustered system (as a few examples), you have a bundle of servers that collectively make up your application.  From what I understand, all the components of such an application environment need to be able to collect info about managed objects on the others to be able to pinpoint the health state of that application. As a rough guide, about 60% of my 350 monitored servers need proxying enabled (and yes, there are powershell scripts out there that will switch it on en masse for you).

With your mail flow notification deluge, as well as making sure proxying is turned on for each of these servers, make sure you check out the install guide that comes with the Exchange MP.  There's a tool you need to run (configuration wizard) on your Exchange Servers to get all the synthetic transaction monitoring going and the install guide details the steps you need to take to get it going.  It's here, but I find the downloaded version in the management pack msi a little easier to wrap your head around http://technet.microsoft.com/en-us/library/dd146139.aspx

If you're going to shell out for a book, the "unleashed" one by Kerrie Meyler, Cameron Fuller, John Joyner, and Andy Dominey is probably the best of the ones I've come across for a "how it works" and how to set it up perspective.  From a troubleshooting perspective, the hundreds of SCOM blogs out there are probably more useful and more frequently updated (used with some kind of RSS feed reader if you wish to maintain any semblance of keeping up with what they post).

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Good luck with it and thanks for the points!
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