Go ahead and elminate it. I think that cats don't restrict flow as much as a muffler does, but they do help completely free up airflow.
i agree with what bnkrupt said about the turbo back exhuast,i ran 5" magnaflow on my 06 lbz and i wouldn't switch back to the 4".:fart :gearjaminyou have to go turbo back... cat back systems are more for looks and sound, if you want a true change in performance, X the cats and get a 4 or 5 inch mandrel bent kit... MBRP is one of the easiest to install... looking at about an hour tops in the driveway..