lol I didn't realize we had that little block! I'd say you could probably remove it, but I assume it's there to block water from splashing up into the air snorkel and possible filling up and drowning your intake and or engine
When I put the SRI on Mine, I had left that piece on for a couple of days and then took it off, for aesthetic purposes only. I can't honestly say that there's any difference performance-wise, though. It's still weak.