Using the string mute feature on the Squier® by Fender® Stratocaster® Guitar and Controller during gameplay

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Why does the Squier® by Fender® Stratocaster® Guitar and Controller have a string mute? Do I need to use it when playing Rock Band™ 3?
The string mute on the Squier® by Fender® Stratocaster® Guitar and Controller helps stabilize the signal sent to the game console. It should be engaged when playing Rock Band™ 3.  However, the string mute should be disengaged when playing the guitar through an amplifier.