Yea, you could "chuck it" and use the headlight switch as it was originally built.
The other option is to wire everything with the relay in place. It looks like you have some wiring "issues" anyway. The relay is a good piece to have as it takes the load off the old headlight switch and will help you have brighter headlights. You could also replace that relay with two Tyco relays, but if that one works, I don't see why you couldn't clean it up and use it.
