I need to investigate the properties of this material(s) for a better understanding. The basic function is to act like a low value resistor until a current threshold is reached, whereupon it switches to high resistance mode. It could actually be a thermal trip, rather than current (although related via other parameters).
Therefore, given my limited experience with semiconductor materials, I assumed some nasty nonlinear properties, especially near the threshold point. There could definately be some parasitic rectification occuring, too. I remember experiments we once did on the switching properties of cuprous oxide on telephone circuits. Noisy.
So my answer would be yes to both questions. Although I think replacing it with a jumper and not a resistor would lead to the better solution.
Warning! Removing protection devices puts your drivers at risk!In my particular case that is ok. I plan to drive the loudspeakers using a tube/transformer output circuit with no feedback. Hence, there will never be any dc, it will clip softly, and it doesn't put out that many watts. I am safe. Besides, I don't mind if I do blow a driver, as I have the abilities to replace it (in fact, I already booched one of the tweeters).
http://www.circuitprotection.com/radial.aspjh