Well, the Porsche 928's have an almost identical metal reducer in the power steering hose. In that community, it is believed it functions as a 'muffler' to quiet the sound of the hydraulic fluid flowing through the hose.
PS: I clearly understand the 'doubters' below, and as I said above, it is 'believed'. A couple of guys have cut their old hoses up, and their was a spring located in that area (tapered/conical in design as I recall). It may be for turbulence reduction. Someone who has insight from German hydraulic engineers of the '70's and '80's could probably get the most accurate answer!!
Gary