yes if you don't need the heater core and it is leaking doing the loop bypass is fine.
If you wanted to change the heater core with a working A/C system it will require draining the A/C system of freon.
then you will need to remove the AC lines and the expansion valve before you even get to point of being able to take apart the inside of the car to get the heater box out.
from there you will need to disassemble the A/C heater box as the heater core is buried at the bottem of the box.
you will discover all kinds of problems along the way.
when you go to put everything back together. you can run into major sealing issues with the A/C lines that may require new expansion valve to compressor lines and it would be a good idea to replace the A/C dryer/filter.
What happens is the original hoses expand under the charge pressure of the freon. once the system depressurizes the hoses can change shape again and then they never seal correctly at the O rings. i had that happen on one car that needed a new A/C compressor, changed the compressor and then the system leaked at every other O ring joint requiring A/C hose replacement.
the cost can be upwards of 1000$ just on the A/C system.
the cost of just servicing the A/C system with new freon is about 150-200$ the cost of the hoses if needed and a dryer will also be around 200$. when you bring the car in to have the freon removed that can cost 100-150$ unless you want to help the ozone layer
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now if your system is R-12 that can be a major headache. you will want to avoid changing to R-134a because then your taking about a new condenser core rated for 134, and having the entire system completely flushed to change to 134a mineral oil.
or you have to find a place licensed for R-12 and the cost can be higher dealing with that aspect.
before you know it you might have to spend 1500-2000$ to have the heater core and the A/c system working again. in addition to a ton of labor that you would want to do yourself or get hammered for another 1000$
now i would say if the heater core was leaking and the A/C was non-functional then it would be worth going down the road and replacing everything to start over.
but since the A/C is working leave it alone. loop the bypass to the water pump.
then what i would do is remove the heater lines going to the firewall.
cap off the heater core from the firewall.
pull the Heater control valve in the engine bay and make sure you cap off the vacuum line that went to the heater control valve to prevent a vacuum leak.
the a/c system will work the same and when you switch to heat it will work as normal just not produce any heat for the interior cabin.
stockpile new parts for the feature and then if you keep the car plan on what i talked about at the start.