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For a new user having any dialog come up essentially in bypass mode may be a little confusing initially, but once you see what it does, no biggie.
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Yep, my understanding it doesn't come up until the first quantize action on that item occurs but yes I agree it can be confusing to the uninitiated.
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In some places it's just a dedicated function like in S1, "Restore Timing". No matter what you've done to midi or audio it just restores the timing of the selected notes or audio clips or whatever if you've quantized audio. If all editing is truly non-destructive you have to keep track of all that anyway, aside from simple undo.
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Cool, I assume that is where the same idea above stopped in Reaper for now anyway.