I just did some exploratory test driving.
As you know, the starter safety switch engages when you push the clutch pedal completely to the floor. You can see that it functions that way when you look under there and push the pedal down. This other switch over on the quadrant side is closed when the clutch pedal is in released position. It opens almost immediately when you begin to depress the clutch.
I drove along with cruise set at 50mph. Tapped the brake and the cruise shut off. Reset cruise to 50mph and continued. I slightly depressed the clutch (didnt touch the brake), and the cruise shut off.
Conclusion: The switch pictured does actually shut off the cruise.