Replacing the 2 cats with 1 high flow cat isn't necessarily illegal or a bad idea.
Our '92 had 2 cats, and when I went to exhaust shops, not one of them recomended replacing the 2 with 2. There is only o2 sensors in front of the cats. As long as the new cat is efficient enough (which a new high flow should be) there won't be a problem UNLESS your state inspections say you can't replace 2 cats with 1. I know there are places like that (Ca for example)...
Here in Arizona (even in the Phoenix metro area) they don't care as long as the new cat works well enough to allow you to pass emisions (they use the 5 gas test up in Phx)...
In our case, the truck emisions improved greatly by replacing cats with over 200k miles on them with a new high flow cat.
The resonator is actually after the muffler. You can take out the resonator if you just want more sound.. Changing the cat won't really change the sound much if you don't change anything else.
From the pic, I am assuming you have a single y pipe with 2 cats that then goes into dual exhaust after the cat. If that isn't what you have and you are thinking of removing the cat from 1 bank (so there are no cats on one bank), then that would be bad,illegal,etc...
~Mark