There is the least amount of vacuum when you are at the highest speed, so if you don't have the vacuum modulator hooked up, the transmission will think you are have it floored, and will try to delay shift points. It will try to stay in lower gears, under the belief you need emergency power.
I don't think so, I just installed a Edlebrock Performer manifold and carb and my line from the Vacuum module to the carb is not hooked up and my car goes only 25 MPH,