It doesn't do anything for the narratives in Elite as they are. It's just a nod to previous books, but it doesn't really benefit the game as much as something that would matter to what's going on in the game now.
Just putting it into the game doesn't do much for anyone. It would need to matter to the game state, and it's more going backwards than pushing a narrative forward. You could work it into the current environment, but that's more of a detour.
I agree, but you need the small as well as the large to give the game extras. For me the TG would be akin to the generation ships or INRA bases, giving spot flavour while Galnet evolves characters and situations.