Tim, I just opened up the Pertronix 1168 Ignitor, no mention of the TVS in the installation instructions.I'm thinking the TVS is a safety valve for warranty claims from loose wiring,bad alternators and other factors that can spike the unit to death.It's been my experience, many older vehicles have suspect wiring in the first place, then the owner crimps in poorly done connectors, wrong guage wiring, missing grounds, all not the best things for electronics.
I'm gonna put this unit in our 51 truck tomorrow, no diode, and go for it.It's got a 30 month guarantee and I'll keep the points in the glovebox just in case,lol.