Yes it is very important and so is the bond. On a sheath you are trying to make the multiple layers look like one. Some glues make more of a "glueline" than others. On this sheath I made for one of Nathan's knives ya can see the welt edge. There is three layers of leather here, see no glue lines and ya can't really see the layers of the leather even. Thats what a guy is looking for.
With the stitched line back from the edge say 1/4" or so, you rely on the glue to keep the pieces together. I tried the Leather Weld when it first came out some years back and didn't like it. Didn't work for me and how I work. Doesn't mean it won't for you.
The leather industry standard is Barge Contact Cement. I quit that about 15 years ago, for several reasons. Lots of fumes that get ya high. Bad stuff. Haz Mat so expensive to ship. Ya need it and a special thinner. Messy and it didn't do a very good job on a lot of the oily chap leathers I work with making leggings. I was ripe for a change. A friend of mine, who is also a professional leather worker, turned me onto this. He found it because he and his wife had a new baby. He was at home doing leather work so he did the childcare while his wife had a job in town. Problem was because of the fumes of the Barge, his wife wouldn't let him take the baby out into the shop so he wasn't getting anything done. This is what he turned me onto:
https://www.homedepot.com/p/DAP-Weldwood-128-fl-oz-Nonflammable-Contact-Cement-25336/100158175
I buy it by the gal at the local Depot and pour it into a squeeze ketchup bottle from the dollar store for application. I spread it out with those cheap foamy brushes and toss when done. No fumes, works on all leathers, thins and cleans up with water and an incredible bond and minimal glue lines. The only thing I've found it won't glue is a zipper ribbon so I do keep a very small bottle of regular contact cement on hand for the occasional zipper I might do on a travel bag or a pair of shotgun chaps. Here I'm gluing up a rifle scabbard. I will often use a Dixie cup if I don't want to go directly from the ketchup bottle to the project.
The water buffalo leather used on these leggings is pretty oily and some glues would have trouble with it but not this stuff.
I will also use this water buffalo as an overlay on sheaths. This stuff just works:
This is the only leather glue we use in our shop and we make a very wide variety of items with lots of different leathers. I mentioned the zippers already and the only other time is when the wife is making her Horseshoe Coasters. She uses clear Gorilla glue for that but she is glueing an iron horse shoe to leather.