Bad catalytic converter 97 Taco

The cat on my 1997 Taco 2.7 is rattling pretty bad, exhaust manifold is also cracked. I have the replacement manifold and gaskets and thought of cutting out the cat entirely and replacing with straight pipe but.....I noticed a second o2 sensor past the cat. Will cutting out the cat throw the computer in "limp" mode or will it be fine to do? Are there any other options?

 

I see the URD O2 simulator, would that work with a gutted cat or straight pipe correct or would a cheap aftermarket cat be a better route?

 

apparently it will work according to my toyota parts guy.