Good thought, and worth doing.
This is in the middle of the chain that connects the hammer arm to the treadle. I stomp on the treadle, the treadle pulls the chain, the chain pulls the arm, the hammer goes along for the ride, and thump. Adding the spring means that when tension is applied to the chain, the spring has to take a moment to compress before it starts to pull the arm. This gives a slightly softer feel to the treadle, which I hope will make it easier on the knees and hips.
If the spring were to fail, the springs at the back of the hammer would pull the hammer up and away from the anvil. In other words, failure of this link would not result in the uncontrolled descent of thirty-six pounds of steel and lead.