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The negative is that it is there to protect your seat back and motor. Disconnecting them could cause damage to either if one were to try to move the seat back while it is already in contact with the bulkhead. Just keep your exit seat position set 1/4" away from "all the way back".
Currently when the seat back comes in contact with the rear bulkhead carpet, it will activate the limit switch in photo. The will shut down all movement of the seat (to the rear).
By removing the single wire connection (as in the photo), the limit switch will no longer be in play. Yes, the seat back will recline a little farther but don't force it and overload the motor.
Where the limit switch really comes into play is with the EZ exit memory; if you are on the tall side and want to move the seat all the way back and up using the "EZ Exit Memory", you will probably run into this issue as I did; the seat bottom motor runs a about 3 times faster then the seatback recliner motor. So what happens is when the exit memory goes into action, it first moves the seat all the way back, running the upper seatback into the limit switch and shutting the whole operation down.
Pop the hatch (coupe's) or lower the top and have someone watch for clearance between the seat and bulkhead while the seat runs through its exit memory. If the seat comes in contact with the carpet, move the starting position of the seat slightly forward, just enough to see/keep a little daylight between the seatback and carpet.
The top of the seat got wedged under the windshield header in my car while I looked for something under my seat. I just forced it back while
worrying I would damage the leather