The way Sharepoint defines the content of the .iqy file is the below:
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${base}/_vti_bin/owssvr.dll?XMLDATA=1&List=${params.List}&View=${params.View}&RowLimit=0&RootFolder=${encodeURIComponent(params.RootFolder)}
Selection=${params.List}-${params.View}
EditWebPage=
Formatting=None
PreFormattedTextToColumns=True
ConsecutiveDelimitersAsOne=True
SingleBlockTextImport=False
DisableDateRecognition=False
DisableRedirections=False
SharePointApplication=${base}/_vti_bin
SharePointListView=${params.View}
SharePointListName=${params.List}
RootFolder=${params.RootFolder}
I tried to change several of those parameters, and the only way I found to remove columns path and item type is to remove the last 4 lines:
// to remove
SharePointApplication=${base}/_vti_bin
SharePointListView=${params.View}
SharePointListName=${params.List}
RootFolder=${params.RootFolder}
However, by doing it, the columns are not formatted anymore. For example, a people picker columns will return ID;#Name instead of just the Name.
On the web we can find various parameters to add in the URL but none of them as produced the correct format.
To make the things easy to deal with, and to remove the path and item type, and if you don't have any lookup column, then the best approach is to use the below URL provided by Amit:
http://mywebsite.com/subsite/_vti_bin/owssvr.dll?XMLDATA=1&List={LIST_ID_REMOVED}&View={VIEW_ID_REMOVED}
After additional research, I found a Microsoft Doc about the parameters in the URL: https://docs.microsoft.com/en-us/previous-versions/office/developer/sharepoint-2010/ms478653(v=office.14)
The columns item type and path are probably automatically added by Excel because it gets a XML feed.