Unless you want to use the PCV for emissions, then do not use the breather. The PCV can and WILL pull vacuum in the crankcase if you leave the breather off.
You really should use the PCV with no breather, and a pan evac system. At idle, the PCV will carry the load, vacuum wise, and the pan evac will help a little. At cruise the PCV and pan evac will both be working, the PCV will probably carry a bit more pull than the pan evac, but they both will be pulling crankcase vacuum. At WOT th PCV won't do anything but the pan evac will.
This isn't new. Not many guys did it because they tried it with a breather on the cover. Neither will work with a breather, unless you care about emissions. Using both covers theweakness of each one.
The reason it fell out of favor is dry sumps and vacuum pumps.
I'd think the condensation is because you aren't getting enough temp in it, and your idle tune up is off.