The PO had a fuse connected to a set of wires coming out of the steering wheel. I can figure out what it goes to, the airbag light is blinking but I'm pretty sure that's because of the front bumper sensor and not to do with this. See attached pics, I could really use a hand identifying it.

 

not sure how similar 92 is to 93 but here's link to the FSM and wiring diagrams
Foxed.ca - Mazda RX-7 Manuals

 

I believe I've figured it out as the airbag resistor, I've been searching through the forums and though there are a lot of threads about the resistor I'm lost about a few things.

1. I've got the stock wheel and airbag, why do I need this? What is the original part and connection for this?

2. I'm still getting a flashing airbag light with this installed so I"m not sure whats gone wrong here.

3. My cruise was disconnected how is that plugged into the clock spring?

 

The SRS inflator wires should come through the cable reel along with the cruise control buttons on the steering wheel. it is possible that the PO had a problem with the cable reel and tried to insert that fuse in the airbag wires to turn off the light. iirc the inflator should be 2ohms resistance anything outside of that will set an error code in the SRS module.

!!warning!! don't try to check resistance of the inflator, it may deploy if you do.

take a look at the cable reel connection on the backside of the cable reel and see if anything has been cut or is missing.

as far as needing the airbag the short answer is you don't. the long answer is technically you are not supposed to tamper with that system, at least in the US, and if you have a saftey system inspection in your area you may fail for not having an airbag. if you do delete the system you can pull the fuse and that should turn out the light, alternatively you can install a 2ohm resistor in place of the inflator (likely those wires with a fuse installed) and that should turn off the light but it will still light up during the bulb check.

*edit*
check out the 94 body electric manual section s. it should be similar to your car except you don't have a passenger airbag.