How to build your own Solid-State Instrument Voltage Regulator (IVR) for yourself (or build them...

The cap is to filter the input power from the vehicle. Most of the time you'd be fine without it. There are other "protections" that could be built into the device, but mine, like yours, was designed to be simple yet still effective. Electrolytic caps cost fractions of a penny and they don't make the assembly much more complicated than just connecting wires to and from the regulator, so I add the cap.
Sounds like a good Idea then. Thanks.