If you're worried about emissions testing in two years, cut out the bad cat and throw a straight pipe in there, but clamp it instead of welding. If the car is still running in a couple years buy an aftermarket cat and to install for the test. There is no sense burning money on a car that probably won't live that long anyway.
Honda used to consider a quart per 1,000 miles acceptable oil consumption. I doubt they still do, but the important parts of the engine will likely survive as long as it doesn't get much worse. The rest of the car is going to fall apart around it though, especially if it gets driven like an offroad buggy.
