There was absolutely no noticable change in performance or how the engine runs after I removed the exhaust.
The "no backpressure=no torque" thing is a myth anyway. Manufacturers have to meet noise requirements, which requires restriction in the exhaust. Because of this, they use said restriction to tune the reflection of the exhaust pulses to make fine adjustments to the torque curve (changing volumetric efficiency at specific RPM ranges). But these changes are a compromise, torque is lost somewhere in order to increase it elsewhere in the range. This can make it seem like you've lost torque, but only because the curve may have evened out and become less "peaky."
In big-bore, low-revving engines, the tuning is generally done toshift the torque curve toward the low end, so removing restriction (backpressure) canmake it seem like torque was lost becausethe curve shifts back toward the high end, lowering that initial "punch" a bit. But as long as your engine isproperly tuned, you will maximize performance by minimizingrestriction in your exhaust.
For maximum torque over the entire range you want no restriction/backpressure. That's why top fuel dragsters have very short headers, and why all racecars minimize restriction in their exhaust. A small bit of pipe is needed simply to keep cold air from hitting the back of the exhaust valve and cracking them.
The popping in the exhaust is indicative of a rich condition, particularly the louder "gunshots." With the stock exhaust with the baffles lightly drilled, I got quite a bit of popping. As soon as I removed the exhaust, the popping went away until I richened the mixture. Now it pops like it did before, only louder due to the lack of muffling material. Contrary to popular belief these pops and bangs are not backfires. By definition, a backfire is when your engine fires back into your intake. That would be bad.