You're on the right track about it being a damper for rear-end vibes... I read that if you do a gear swap you can take it off.
Mine is long gone... I use an aluminum driveshaft which is supposed to dampen some of the vibes that come from the rear.
Take it off, and if you don't like it that way you can always reinstall it... I approached it that way and never did put it back on.
