Delete Reserve Lighting Unit?

I'm working on a cafe/brat style bike and thus want to delete as much electrical as possible. I understand that it can be quite the undertaking, so for now, getting rid of that little gray box would be a good start. On my stock gauge cluster, the red light (I believe it's the lighting warning light?) would blink constantly.

So I removed the little device and my headlight went off, no surprises there. Is there a connection I need to fix before I can remove it? Or is it completely necessary?

red light is just a general warning light. it could be many things, but i would hesitate to get rid of it becauset also turns on when there is a drop in oil pressure. Im all for getting rid of unnessary crap, but that little red light could save you from a expensive mistake if something should happen. you could just get a small red LED, and put it somewhere discrete, like the back of the headlight bucket.