What is the point of "Initial Catalog" in a SQL Server connection string?

If the user name that is in the connection string has access to more then one database you have to specify the database you want the connection string to connect to. If your user has only one database available then you are correct that it doesn't matter. But it is good practice to put this in your connection string.

This is the initial database of the data source when you connect.

Edited for clarity:

If you have multiple databases in your SQL Server instance and you don't want to use the default database, you need some way to specify which one you are going to use.