it serves no purpose anymore. originaly it was for a quest that involved a gnome that was in the zone, but the quest was broken even then and got lost in the giant heap of broken quests that SOE decided were not important enough to worry about. And no I don't remember what the quest was for, probably something you couldn't even GIVE to a newb these days...
If you read the bloodstained journals 3 and 4 that drop off random lizards... it belongs to a gnome that I've heard is somewhere in the zone... the quest isn't listed... will look further.