I agree that a working EGR doesn't hurt, and might even increase engine life, but the part about not actually needing it to pass emissions makes it a scam as far as the tree hugging enviro-Nazi crowd is concerned. The same thing can be said for the big afterburner (A.I.R. pump) they used to use. It looked real convincing and even used real horsepower and a belt to drive it, but as far as doing your part to clean up the environment...
OP's vehicle failed for excessive CO and NO. He also complains of poor gas mileage. Suspect number one has to be ignition parts, and vehicle manufacturers made them the easiest things to replace. Someone mentioned California would subsidize repairs to the tune of $300. Save that for the big ticket item, like a new cat if indicated. If you really can get that money, don't blow it on "induction system service".
Cheers,
Earle