I think it might be because the GPS signal does not always work. When it doesn't you'd still want to know your speed so it needs a magnet. It's also probably more accurate using the magnet than GPS.
I think it might be for when you want to use the bike on a trainer--you can still get a milage read out. I'm not sure about this--I'm trying to find out myself b/c I'm looking to buy the 305 and sensor in the very near future.