Better check on your state's smog check process. Here in California, you could never get away with that...they'd fail you for 1) removing the cat, 2) modifying the original exhaust system and probably 3) spewing too much pollution out the back.
<span style='color:green'>1994 325i </span>- - - 75,000 mi.
No mods - - - very happy as is!
<span style='color:green'>1995 525i </span>- - - 154,000 mi.
No squeaks or rattles... unreal!