I can provide my observations of what the timeout does in regard to Modbus polling. By extension, I think the same thing happens with HTTP VI's -
Let's say you have 20 modbus sensors and have a timeout of 500ms. The regularity of any particular sensor updating is influenced by the timeout. Increase the timeout, the sensors poll less often. Reduce the timeout, and the sensors update more regularly (but only to a point). I can 'tune' the timeout for my modbus network to effect the best update rate.
One modbus server operates over a wifi link and is best at 4000ms timeout.
A different modbus server is on ethernet and is best at 500ms timeout.
So the timeout is essentially an interrupt that pushes the Miniserver to the next sensor.
For HTTP VI's, I anticipate the same thing -
Practically, the Miniserver doesn't 'do' anything on a timeout. Except for cycling to the next VI. In the absence of a timeout, the Miniserver would conceivably get 'stuck', waiting for a response. If you had 20 HTTP VI's, that would slow the system down immensely.
It's just a pity that the timeout doesn't provide some feedback to the user. It's frustrating to realise I'm looking at 3-day old weather data when the VI has failed.