Correct.....but don't you have to smog your car in New York state? Realize....smog pumps have a tendancy to cease up if left bypassed for any extended length of time, so don't bypass it unless you never plan on using it again?
Also, although the smog pump isn't pumping fresh air into any cats, it still does assist with the scavenging method. That's why the majority of the off road H-pipes sold still have provisions for the AIR tube.
For the 2-3hp you'll gain, I'm not sure it's worth it. I'd repair the unit and get it functioning again if it isn't too much trouble. Especially if you've got to ever put your stock H-pipe back on to pass your state smog test.