The EGR valve takes slightly cooled combustion gas, which is consequently richer in CO2 and less rich in Oxygen and feeds it into the inlet gasses for the next combustion cycle.
With less Oxygen there is less energy in the system CxHx +O2 = CO2 +H20
the nett effect is that there is less heat, lower temperature. At lower temperatures less NOx are formed. This is better for air quality, as these NOx are harmful to passing pedestrians, and other road users including drivers.
If you block or remove the EGR there is no recirculation of exhaust gas so you get the full 20% Oxygen. Soot is just unburnt carbon. With more Oxygen in the cylinder there is a better chance of more complete combustion.
It's a trade off soot Vs NOx. I am sure BMW and regulators thought about these things and guy the compromise right. I think your actions are pretty selfish, but hey if your car works better like that forget about the little children eh.
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