That is kind of how they work. They read the injector duration and and adjust that duration via mapped tables in the ECU. The petrol ECU still can adjust the mixture via its trims from Lambda readings.
The distributor works like the Bosch K jet as I said but instead of a air metering flap opening valves it is done with an electric stepper motor
It should be possible to make the factory switch only operate the dash if the gauge really ment that much to you but it could be very consuming doing so
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