I think it's largely tradition, going back F.D.R.'s inauguration. There is an awful lot of tradition present in government function, partly because it is so very legal, and much of what's considered in law is precedence. Invocations have been offered by Jews, Protestants, Catholics, and now an Evangelical. So it's not like the government is attempting to establish a religion or attempting to prohibit the practice of any religion, which is what the Constitution prohibits (the phrase "separation of Church and State" is not found in the Constitution).

Generally, the invocation is recognizing the solemnity of the occasion, and not much more. Since it was started in the depths of the depression, it's an interesting parallel for our current economic climate.

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