Did a search and really couldn't come up with an answer. Should any gains be expected when switching from obd2-obd1 or is it just the simplicity of having less sensors monitered?
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I doubt u will have any hp gains
just less sensors monitered

no, its an import myth.

The advantage to going OBD1 is being able to use aftermarket chips (hondata, whatnot).

The extra sensors are used for diagnosing problems, look at the trouble codes for an OBD1 car and then look at the trouble codes for OBD2.