The target audience for Dr. Leventhal's books is an assembly language programmer, not a hardware designer.
You should stop by Jeff Laughton's website and have a look at his page
explaining timing diagrams. It could answer quite a few questions for you.
Are you saying that I'm asking something related to hardware design rather than programming?
Timing diagrams are all about hardware, so yes, it would appear you are asking about machine design. A good understanding of how a particular device, such as a 65C02, responds to inputs and generates outputs as a function of time is essential to designing a computer of any kind. However, understanding a microprocessor's timing diagram, while useful in and of itself, is not a prerequisite to understanding the processor's assembly language.
That said, a good assembly language programmer will know enough about the underlying hardware's behavior to know when his choices of instructions and algorithms are appropriate. BigEd once made a comment to the effect that the novice doesn't yet understand why a particular value might be in a register, whereas the more experienced assembly language programmer will be efficiently using all the registers, and the expert will seem to always have the needed values in the registers at the right time. This is the art of writing software, which, by the way, is not something that is easily taught to anyone in a school.
Although assembly language may be necessary to utilize machine features that aren't accessible from a high level language, the desire to write in assembly language is often the result of wanting to get the best performance from the machine. For some of us, assembly language is often a first choice, simply because of the control and speed it offers. If you are writing a device driver, you have to understand chip behavior at the bit level and as Garth suggested, know something about timing so you can identify and eliminate performance bottlenecks and/or potential "race" situations. Hence knowing something about how the machine works is fundamental to knowing how to make it work for you.