Correct breather for cast aluminum valve covers
Judging by this, it seems you can cut the bottom 5/8" off the plug (to the bottom of the lock swege underneath the groove channel in other words) and it would work. (Excuse the die grinder ... I ran out of hands.)
The only 1" ID grommet in my stash is the same sized opening. If it wasn't junk I'd just give it to you.
You're right that the oil cap hole is thinner than the knock out boss by quite a bit.
I don't know if anyone makes a screw-in nippled breather like yours but, even if they did, then you'd need to plug the opening on the knocked out one. Ackkkk!!
Just cut the bottom off the plug and you should be good to go.