There are not problems, other than an intermittent CEL...you'll get one eventually.
That sensor is used ONLY for telling you if the cat is not doing it's job...basically, if it reads the same as the primary O2, it's throws a CEL.
You can cut the wires, leave it dangling, whatever...with no loss of power or bad gas mileage or any neagtive effects.
But FYI...a 200SX primary O2 will plug right in and fit that hole...I got a used one from a friend with a 200SX...he pulled it from his car just as general maintenance, and it worked for me. The plug fits, the thread/pitch is the same.
- Brian
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