Cloud connector and XSHTTP Destinations

Hi,

A rather entry level question. but I didn't see a clear answer anywhere, so here goes. I downloaded and setup the HCP cloud connector on my on premise system. Also I set up resource connections. I read that the next step to connect my XS application on HCP would be to setup XSHTTP destination files to my on premise service (is this wrong?).

Question: Why do I then need the cloud connector and all its setup. Wasnt an XSHTTP Destination setup in my XS application sufficient to access any destination over the internet, so long as it exposed its url?

Is there any other purpose of the cloud connector that is beyond this simple requirement of mine? Is the key Security here?

Nehal.