The Hardware mouse just controls your mouse, so you won't be able to do anything on your pc in the meantime. Has no point to use in my opinion...
With the new mouse enabled scripters can modify the movement algoritm. A good example is that all my scripts generate a unique mouse profile for every bot account, which makes the speed, delays and misslcicks more unique
If you didn't select the new mouse, it will use the default osbot algoritm.