Its possible to take it off completely.

I've fitted a lightened flywheel to my 98 748 and it does make difference the engine rev's a lot easier now and it does feel faster, however starting it and getting it to tick over when it's cold is a pain, but I found just slightly increasing the tick over rpm has helped but once its warn its fine.

the bikes with the early type fly wheels (two yellow wires) can be used with no fly wheel at all which is why some people have them for sell.

ive just had my bike converted to a 853 and whilst cjs performance were doing the upgrade they completely removed the flywheel andn it does seem to make a difference although having a new engine amy be something to do with that

will report back after silverstone to add my full findings, its going to be fun

How does having no flywheel affect the charging system, and doesn't the engine feel more lumpy without it?

Excellent reading, I think when my bikes run in I might remove it as I have always had major problems with wheel hop on the corner entry. The only bikes I havn't had problems with were the 2 Strokes I started off on.
I always run high tickover on all my bikes about 1500-1700 rpm.

it wont stop wheel hop.
that's due to engine braking hence why your 2 stroke didn't do it.
if you want to get rid of that you need a slipper clutch. or don't change down so many gears before the corner

agree with the slipper clutch comment, that will be my next addition.

the bike runs fine without the flywheel, spins up lovely but probably not a goood idea if you value tyre life, i was actually spinning the rear up a couple of times at silverstone, great fun though

Red Racing Parts sell the Ferracci flywheels - very nice on my 996

http://www.redracingparts.com/en/english.htm