What does this coolant hose do?

What does the waterline that goes from the t-stat housing to the water pump do?
I see in an MM&FF article that an engine they are running isn't using this, and I just want to know what I would be giving up without this on my motor...
 
The bypass hose allows coolant to circulate through the block before the T-stat opens. Without it, when the engine is warming up, the coolant will just sit in the block and it won't heat up evenly