What does it actually do? Why is it there
When you brake, the weight of the car 'shifts' forward. The tyres at the back have less weight pushing them into the tarmac and therefore have less grip. That means they're easier to lock.
However, if you're carrying weight in the boot, or towing, more weight remains over the rear tyres so there is extra grip available, which could be used for extra braking to make up for the added weight.
The valve gauges the amount of grip available to the rear tyres judging by the height of the rear of the car. If it stands on its nose, there's probably very little weight in the rear and therefore it limits the amount of braking the back wheels can do. If the car is arse heavy, it will give extra braking to the rear in order to stop the whole lot quicker.
Simple illustration;
This transfer of weight is why the front brakes do about 80% of the braking. (and the engine over the front wheels too)
The 172 cup, like all other 1*2's, isn't approved for towing and isn't likely to be carrying much weight (being the cup model it's more motorsport oriented - supposedly), so the rear braking effort is locked to minimum.