The TPS sensor sends a signal to the CDI box, which modifies the ignition advance curve for better ride ability without costing peak power.
It's a good thing to have, but not essential. I'm not totally sure what the ignition curve does with no TPS signal, though - might put it into a very safe ignition map which will slow the bike right down.
No point in swapping to a different carb if you disconnect the TPS - pretty sure they're an airStriker, power-jet PWK which is as good as it gets.