If you have a carburettor engine then this earth is not that important, but with a GTI digifant injection system this connection has an earth cable dedicated to the ECU and running about with this connected is just an accident waiting to happen, usually when starting up and the starter motor is pulling a lot of current & the usual earth cant keep up, then it can & will leave the ECU stone dead and unrepairable!
BTW this is not just a protective earth but actually part of the ECU injection & knock sensor circuit.