The approx 1/16 inch gap before welding is to accomodate weld shrinkage. If the pipe is jammed in the socket and welded, small cracks can develop at the root of the fillet weld as weld shrinkage tries to draw the pipe into the socket. However, it should be noted that fatigue testing by Japanese indicated sockets where the pipe is jammed in before welding performed better than those with a gap, so it is probably not a big deal, although jamming the pipe in before welding would not comply with the Code.
he main points are that the B31.3 Code addresses before welding, so if you are going to radiograph after welding, provide supplemental specifications to the construction contractor requiring a gap after welding, if that is what you will be looking for.
Socket weld fittings should not be used in services subject to significant erosion, or crevice corrosion.
I personally believe that having a gap before welding larger than 1/16 doesn't significantly affect performance, as long as there is some insertion, but am not aware of any analysis or testing to confirm this. There was analysis and testing on slip on flanges that indicate depth of insertion is not significant.