I've have been going through this scenario through my mind for awhile. Since California is one of the hardest states to pass emission test it makes it hard to decide on what kind of overhaul I'd want to do. If I had not to worry about emissions i would have gone w/ a straight pipe, pure gain w/o restriction.
gutting cats should make things a little louder. Not really sure how much more louder. There's a difference in sound when comparing n/a to turbo exhaust setup. Supposedly the turbo make the exhaust quieter. (correct me if i'm wrong). Cats do restrict flow and I'd get cats if you're worried about cops. No cats = smelly fumes and possible black smoke . It's like asking for a ticket here in Cali.
Since I'm in the same boat this is what I'm doing: 2 bungs (one wideband and one down stream o2 or exhaust temp gauge or non-fouler), 3" pipping, and 2 cats. It's pricey, but it's the piece of mind of not having to worry about the exhaust being too loud and not having to worry about the cops being on your ass.
Gotta pay to play....