I have used to have it for convenience purposes during debugging, because it as waay to hard to go to the Activity monitor and kill it from there!
So, I think it is an ok event handler to have during development. Though unnecessary for plain quitting!
If you specify the on quit handler, then you have to continue quit.
At least I have, on my machine. I think this is due to the inheritance chain. The application has those handlers wired into itself whether you use them or not. (All cocoa applications have them). So we follow an inheritance chain here. Our quit handler has “overridden” the parent’s so we have to make the parent do the rest of the quitting.
The continue keyword, lets you carry on with the task of the parent, which is one of the things that makes AppleScript able to handle polymorphism. So that you can add behaviour in a child object, then call the parent’s version, to do the general stuff, if the parent’s handler uses the keyword me, the child would be me when the parents handler are invoked.
If I don’t specify the quit handler, then the applications quit handler are called directly, and not the scripts.
So, if you need a quithandler to do specialized quitting, then you have to continue quitting. if there are no specialized things to do, simply don’t include it. It is there, for free.
Edit
This usage of continue for the quit handler, isn’t uniform behaviour for the rest of the handlers, as you don’t have to continue run, open, print, open location etc.
I think the fact that this particular handler is implemented this way, has to do with saving the state of an application when it quits, maybe writing a window position back to a nib file etc.
Edit++
There aren’t many nib files in an applet, so the most probable reason it is implented this way, is to ensure that quitting works from an applets menu.