The STM is useful when using the non derailing feature. It reads the position of the switch using the signaling from the switch. Without the STM2, the iPad only knows the position of the switch if it does the control. The STM2 feeds back the position of the switch when an outside force such as non derailing, and a manual turn. It then reports back to all iPads the actual and current position of the switch.
(edited to reflect corrections by Keith)