You have a neglected relic that has undergone 16th century diagnosis and treatment technique during its lifespan. Chances are the return pipe was plugged and cutting it was the solution.
Concerning the fuel return streaming from the pipe—adapt to it.
Laitch, undestood, that was something, I have considered doing after reading the initial thoughts on this old thread (I hijacked, sorry for that). However Gryphon's sentence of the burrito being there for fuel saving, and me having awful mileage made me think, if the two are anyhow related (as everything else to try is exhausted, temp sensor reads fine, valves are not tight anymore, throttle bodies synced, no air leaks, new plugs, injectors cleaned)
So how I could revert to the old ways, e.g. fuel return line connected to the collector (if that indeed is the place, it is normally routed to)? The reason, I am somewhat baffled is that if you are correct, and the the barbed pipe is only for air exhaust there is no other outlet from the burrito fuel to escape to. There is a tiny hole on the bottom, that could not dump enough fuel and the overflow line obviously, but that would mean raw fuel being puked onto the pavement at 25-30PSI... Or is there another outlet, I am not aware of?
Thanks!