May be obvious but, I assume the lower crankcase vent should be routed into the tank at a level higher than the full level of the tank. Correct?
If you maintain the original purpose, no. The original setup has the crankcase vent (misnomer as you'll see) entering the oil tank below the level of the oil. That is because there is a pipe right there that travels up the inside of the tank and terminates in the condenser bulb at the top. Hence whatever is in that pipe never touchesthe pool of oil.
So if fumes travel up the pipe, dribbles of oil travel down the pipe and enter the crankcase through what we are are calling the breather. Those droplets of oil are deposited on a sheet metal pan about the size of a matchbook, and used to feed the chain oiler.
If you are doing away with the chain oiler, and just need a terminus for the crankcase hose, then yes you would want it above the oil level.