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Engine/Power - EJ20T (pre-2006 WRX and JDM)There is replacement for displacement, it is forced induction - OEM 2.0 liter turbo engines in the USDM WRX. 90-94 Legacy Turbo EJ22 turbo engines can also be discussed here.
According to the EPA, it is illegal to remove any cats even if the car still passes emissions standards. A real stickler can fail the car on a visual check. Typically, as long as the car passes the emissions test, testers don't fail the car.
Yes, you still keep your stock muffler with the stealth-back. Everything else will be replaced. The full turbo-back has the Magnaflow muffler which replaces the stocker.