Early L98s had only one cat. The tube that some have running from the AIR system down to the cat was there to hasten cat light off after start up. With the cat so far back in the system, cat light off didn't occur soon enough for the car to pass the FTP, so adding AIR, got the cat to light sooner.
In fact, the "pup cats" that are on later L98s exist for the same end....to get catalyzation of the exhaust gases to start sooner. The closer a cat is to the engine, the sooner it gets hot enough for the catalytic reaction to begin.
From a performance standpoint, stock or near-stock L98s don't have much to gain from removal or gutting of the main cat as long as the cat itself is in good condition. The put cats, however, can pose a restriction and if you remove the pups but leave the main cat, performance will improve slightly.
Lastly, as many of you have found, the cat convertors also have a part in quieting the exhaust. The turbulence created when the exhaust flows through the cat "brick" definitely quiets the exhaust and when you gut or remove the main cat, you'll always have a louder car.