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The ALDA on turbo cars needs to be hooked up to the intake. The ADA on naturally aspirated cars only adjusts the pump fueling by a small amount to compensate for atmospheric pressure changes at different altitudes. That would prevent a car that was tuned for the Cali coast from smoking when you take it to Denver, Colorado. The small nipple is supposed to be open to the air because that is its input. It is purely to prevent any extra fuel from being injected that the atmospheric Oxygen content cannot burn. No O2 to burn it, no need to for it to even be there (it makes smoke and raises EGTs so it's bad). The higher you go, the less dense the air is and the less O2 there is.
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