on my outdrive the switch you point to would be the trim limit switch, this keeps the outdrive from coming up too far while moving in the water. The other side is the switch that goes to your gauge on the dash and indicates how high or low the outdrive is. When you say the drive comes to a proper stop on its own do you mean proper stop for while you are in the water moving or for when you are on the trailer? If the switch you point to is the same as mine then there is no way it is stopping the outdrive from trimming too high for moving in water without a wire attached. On mine there are 2 up buttons and both have to be pushed to get the drive to go all the way up to trailer position.