It's not a holdover, no, and should not be eliminated!
They do get one free skill, which they create with their DM's consent. For ideas of what that skill would be, think along the lines of craft/profession/perform (as in the English sense of the words, nothing to do with game mechanics). Or, as the text says, it should answer the question "What does your character like to do when he's not adventuring?"
So, your character might have a skill in origami, or painting, or carpentry, or whatever. It's simply used to flesh your character out a little, and is entirely optional. It may give you a few extra little roleplaying opportunities.