That 1.6K resistor is there to put a draw on the LED light... which only turns on when the cruise is on.
The dotted line indicates the physical connection to the 2 switches. When the cruise button is pressed, both the LED and the cruise buttons get 12V+.
The "inflatable restraint steering wheel module" in the diagram is kind of misleading.
It is the clock spring wires in the steering column. And yes, the SRS air bag is also in the steering wheel, but so are the cruise buttons, and the radio buttons going thru the clock spring. The SRS system isn't part of the cruise control system.