The only big issue with how you have it is that those type of block off caps will not last long with a cooling system. I would just get a new piece of coolant hose and hook it back up. Having the oil cooler is somewhat beneficial.

Like bryan said above^ its beneficial
"The oil will run hotter, and the areas cooled by oil --bearings in the turbo, crank, cams and balance shafts-- will also run hotter" -Defiant
If you really want to delete the oil cooler then this kit will help

STM ENGINE OIL COOLER DELETE KIT | 90-99 DSM

The stm kit is for an air oil cooler , like a 90 or evo oil filter housing, its not for the water type of cooler.

Oh your right that's my bad... damn

thanks guys.. I didnt want to delete it just did it as a temporary fix I will route it back to the proper way

The way you have done it is exactly how one should bypass the water-cooled oil cooler if they need to do so temporarily and intend to go back to using the cooler. Blocking the port(s) off on the cooler itself does nothing for you other than to keep debris from entering the cooler. Since you've looped the coolant feed to the oil cooler to the return from the oil cooler to the water pipe, there will be no coolant in the cooler itself other than perhaps a small amount of residual coolant that remains.