It is my opinion that it does add strength to the slender wrist, IF it is inlet very precisely. The strength of the steel is greater than the strength of the thin "slice" of wood that is removed, therefore an overall gain in strength. Look at the picture of the Uggies a couple posts back and notice the placement of the two screws in the tang. They are on either side of what is usually the weakest area of the straight wrist. Wrist strength is also contingent upon the stock maker choosing a piece of wood that does not have some structural weakness in the grain between those screws.
JMO, SRH