the command tells the CSS how to interpret the data that it is receiving.
So, as the documentation says, the only itme you need to interpret SSL data is if you want to do SSL stickyness.
With one module there is no need to do stickyness.
arrowpoint cookie stickyness comes after SSL termination on the decrypted content rule.
this content rule should not use the 'application ssl' command.
In your case there is really no need for this command.
If the config does not work once you remove it, there must be an error somewhere in the config. You can send it to us if you want a free analysis :-)
Gilles.