I think Audioguru is playing with you!
What he is pointing out is the switch in your schematic appears to be across the battery. If you close the switch a high current will flow and something will overheat badly, possibly starting a fire. In a schematic it is often impossible to avoid crossing lines so it is very important to show whether they are actually connected to each other or not. Convention is to use a round blob (a big dot) when the crossing wires are joined and either no blob or a 'bridge' (like the symbol on a map) when they are not joined.
Answering your original question, the diode is to allow charge into the battery but prevent it going back to the charger port if the supply is turned off. The diode will only conduct when it's anode has more voltage on it than it's cathode. In your diagram, it means if the charger voltage is higher than the battery voltage, current will flow into the battery and charge it. If the charger voltage is lower or not there at all, the diode will prevent the battery conducting back to the charger port.
Brian.