General consensus I see is it's purpose is to keep hot oil from splashing up to the PVC valve and intake bottom.
It keeps hot oil off the PCV too.
But yeah, the PCV valve just sticks through the manifold and is exposed to the top of the lifter valley. The valve is supposed to reduce the amount of fluid being sucked in while getting more of the exhaust gases but it's only so effective. It's not a huge concern since the lifter valley covers most of the moving parts that sling oil up. But the oil does drain from the heads into the lifter valley and some does get splashed around through the holes in the lifter valley. The valley pan does shield the valve from being splashed on directly.
Also, there is an exhaust crossover passage that runs along the bottom of the manifold for the EGR system. Splashing hot oil on it can burn the oil causing carbon buildup. Having the valley pan reduces the quantity of oil that hits the really hot exhaust passage.
A lot of people say that keeping the oil off the manifold reduces the temp of the manifold, improving the density of the incoming air. But with the EGR system blowing hot exhaust through the manifold, the heat from the oil doesn't make all that much difference.
Personally, I alway use a valley pan when I put an intake on an AMC V8. I've never had one leak and they always bolt up fine. I did try once to use a "regular" intake manifold gasket like they use on a small block Chevy. It wasn't all that thick but it was enough that the bolt holes on the manifold wouldn't line up and I couldn't get all of them started at the same time. Switched to a metal valley pan gasket and it went in with no problems. I usually pitch the rubber ends that go between the heads and instead go with a big bead of RTV. That seals a lot better than those crappy rubber pieces.
Just make sure you use RTV on at least the water ports and the metal valley pan gasket works just fine.