There are many parts to what VSS considers.
First, if you get a check engine light, it isn't running right. There are no ifs ands or buts to that statement. The system throws a code when something isn't right.
I already said it would run. If you don't know what correct is because it was never setup correctly, you can't say it works right.
VSS is important to EGR, as well as IAC. Sure, people have run the systems without VSS, but people throw codes or check engine lights, or have off-throttle issues.
You said yourself, it wasn't put there for nothing. What good is TPS if you don't have a MPH reference to cross with the % of throttle? You are assuming a vehicle powerbraking meets the same criteria as one with the same throttle position on the freeway, (for example) or that one sitting in the driveway or on the freeway turning 2500RPM doesn't need to know the difference.
There is no one "king" component of these setups. You don't build an engine by throwing random parts together, and you certainly don't take random parts off and expect it to work right either, so why would you attempt to on an injection setup? Laziness? Do you think GM's billions of dollars of research is worth second guessing?
Lastly, if we needed anymore proof, witness the fact that the aftermarket wiring harness makers have now started including VSS in their setups, and stating how important it is, where before they just omitted it out and had you ground the P/N switch.
Read Me
Oh, and by the way, if you check out thirdgen's forums on DIY-EFI, there is at least one person that intentionally runs his vehicle open loop. So open/closed loop also isn't as important as you think it is, when you REALLY get into it.