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what you're referring to is the 'streampath' and it's just an extra part of the stream address and doesn't even need to be there in most cases. is just that some setups prefer / have enforced the use of that as part of their configurations (usually when under the control of a control panel) and is just a way to distinguish the type of the stream or to indicate the type of the stream or if set differently, to promote the name of the stream.
it can be set as 'bob' if wanted and would not have any detrimental effect on things.
the main area where streampaths become useful is with DNAS v2.x where you can have multiple streams and so need to have the means to distinguish between them when people connect. the v2.2 DNAS uses just / for stream #1, then /stream/X/ (where x is the number of the stream for anything else) though there's nothing stopping it being configured to use /streamX for all of the streams, etc.
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