I think GM's thinking was the turbo was going to add alot of extra heat to the oiling system since a large quantity of oil is pumped over the turbo shaft and it picks up the heat from the turbo.
You could do away with it, but there may be some added heat to the oiling system that way..after all, thats why its there to remove heat and heat kills.
Is there really any long term effects?? Don't know for sure, but I'd want all the cooling I could get.