You might be able to test whether this is happening by putting the statement XlApp.Application.Visible = True just before the line SetPointer(Arrow!) to see whether or not this dialogue is displaying once your code executes the statement xlapp.application.quit(). Click on the Excel icon on the task bar and it will either just show you the Excel workbook or it will have the dialogue in front of it waiting for a response.
As for your 2nd question regarding side effects if you leave out the line xlapp.application.quit , the only side effect may be that changes you want saved (in one or more workbooks) will not have the opportunity to be saved.
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