Because, as you can imagine, the amp switcher is using loops to switch the amps in and out of the signal path. In other words, the instrument signal is first split into four outputs that go into each amp, then the preamp outs (effect loop sends) or Slave outs are patched back to the switcher and mixed into one output.
Now, he needs to switch between FIVE amps in that particular rig, while the Amp Switcher only has four "amp loops". To solve that problem, one instrument output is patched to another switcher to extend the switching possibilities. In other words, he uses one of the first four outputs to split the guitar signal to another amp switcher (in the Lonestar rack) that can additionally switch between its own amps.
This could be equally solved by splitting the guitar signal before the two switchers.
Now, he leaves it always on because he simply wants the loop with the second switcher to always be a part of the signal path.
Using this method, you now get 7 loops to use for switching amps (7, not 8, because one is used to insert the second switcher)
Hope I made myself clear. This is pretty hard to explain without a diagram!