You're missing something. EGR is there to lower combustion temp and thereby lower NoX emissions. The small amount of PM (particulate matter, often called "soot" on here) reintroduced to the combustion chamber is primarily carbon and therefore will burn. Shouldn't be an issue at all.

However, if your state measures NoX at the tailpipe (some do) that value will increase. Will it be too much to pass - you'll have to try it to see. And remember that it takes a lot to properly bypass EGR - manufacturers change cam specs, piston design, combustion chamber shape, and who know what else to build an emissions "system" - one component does not an emissions system make. And you're not likely to see much actual improvement from the EGR delete. People are really good at convincing themselves that some change made their car faster, give better fuel economy, etc. but actual lab-based back-to-back testing usually shows little or no change. In fact, scientific testing usually shows a negative effect on the very parameters the modifier was trying to improve.

Dan