egr is recirculating exhaust gases. it is only active at low rpm. it is there to reduce carbon monoxide or some bad stuff (not sure on what gas).
by removing the egr (the ecu wont like it so dont do it without a standalone) you will reduce IM temps and improve low end power because there would now be more oxygen to burn. i doubt it would cause detonation
The EGR has unburnt fuel also, so it actually helps it run a tad richer.
I ran a phenolic spacer on my 5.0 and it made a huge difference in the intake temp. Not much HP gain, that I could notice but I had not plugged the EGR either.
sorry for trolling in the thread, but it said the spacers only fit the '03 P5, i have an '02 P5, is it the same thing? cuz i'm looking to purchase this soon, and i don't want to make a wrong purchase ><