If you are turning it into a drag only car without a doubt pull it. For street use. I wouldn't becuase if you are in an accident and they find out that a piece of safety equipment was dissabled you might have some issues with insurance if you have injuries. The airbag won't kill you but you wont feel great after it deploys. The old air bags are just not as gentle as the ones in newer cars but they will help.
The new ones arent gentle either. My grandma had a accident in her 07 cobalt and it broke her breastbone. The actual chances of it working properly at this age is slim. My car has the bag still in it, but they took the front crash sensor off years ago. The air bag light used to blink, but finally burnt out.
I can tell you from personal experience that the fox body air bags will get the job done. All I got was some bruises on the inside of my arms from holding the steering wheel when the bag went off. Saved my ass though, I was not wearing a seat belt and I walked away with nothing more than bruised arms.