Cutout flow disturbance?
I could be wrong though, this is just from memory...
I'm wondering if I'll be paying a flow penalty for the 90% of the time when the cutouts are capped.

No. If there is a penalty, it would be so small that you couldn't prove it on a dyno. That extra path is filled and therefore plugged with air. Think about it. The air in that part will actually act as a wall to guide the moving air on by. That's what was meant by an accumulator.
And yes, the farther away from the engine a restriction is, the less effect it has. Why? Because the exhaust cools and shrinks as it moves away from the engine.
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. Basically, the hanging piece of the cutout would "fill up" with air and exhaust gas, thus putting the remaining gases back on a linear path. edit: bottom line you'll gain a lot more than you'll lose with the cutout so I wouldn't
too much over it
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