The concept of the DOCTYPE was originally proposed by Todd Fahrner in a W3C mailing list. I didn't take much time to try to find it, or I'd give you a link. Anyway, here's the concept:
In the presence of a DOCTYPE, odds are the developer knows what he's doing, and is attempting to create his documents in according to standards. Browsers are to parse the pages against the specified specs.
If the DOCTYPE has been omitted, browsers assume that the developer doesn't know what he's doing, and also that the developer sucks (well, maybe they don't assume the latter - who knows... :p), and will render the pages in a backward compatible fashion, and trust me, you'll get some funky results.