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Its only purpose is for counting misfires, a requirement of OBD II, the car will likely set a code if it is removed.
If your state requires emission testing most will not pass an OBD II car that has any DTC's or has failed to pass all necessary monitors, misfire is one of those monitors.
For counting purpose, but not to adjust anything, right?
Could be programmed out, like the back cats right?
To the best of my knowledge the crank position sensor is only used for misfire monitor on the LT4, that is not true on all engines that use them.
I'm sure a tuner can keep it from turning on the SES lamp, I have no idea if they can make it appear to have passed OBDII monitors for emission testing purposes if the sensor is not there, I suggest asking one of the tuners that sponsor the forum.
Keep in mind that emission laws can and do change, even if your state does not test now that is no guarantee it won't at some time in the future.