The 25mpg highway I get doesn't seem to matter what speed I go. I cruised 90-95mph (targa off of course) for a nice 5 hour drive and still got 25mpg. A friend who was following me in his Civic got 17mpg, he normally gets in the lower 30's on the highway.
You can remove it or keep it, it won't affect how the car runs. You should be able to get any muffler shop to make you a whole new cat-back for around $100. I highly recommend 2.5" or larger if you're looking for a good sound.
Your downpipe could be clogging and choking the engine. That rotten egg smell is indicative of a bad catalytic, and usually the first one in the dp goes out first.
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