yeah smelling & dripping fuel is bad, best replace it.
breather line, I'd still either plumb it into the inlet between the filter & TB butterfly or put a filter on the end or if ur MOT guys happy let it breath open. tank needs to breath cos it's a closed system, blocking the breather will create a vacuum in the tank as the level goes down which could affect fuel pressure in serious cases.
the walbro pump is just able to supply at a faster rate but the pressure reg remains the same so the hoses or lines r ok.
btw please use the correct terminology or it can get confusing.
lines/pipes/tubes = solid metal bent pipes, hoses = flexible reinforced rubber hoses.
if u can afford the 8m of 8cm hoses and securing clips for ease of fitting, go for it
dunno how the cloth braided hose compares to normal internally reinforced rubber hoses or stainless braided hoses in terms of durability and MTBF but other members maybe able to advise.