For me, I'm not familiar with the K&N filter you're considering. I think the screen does most of the work in the original filter, and pic shows it has worked in the past collecting dirt and dust. The oil only captures the heavier than air materials/critters falling into it, not the micro particles that get caught by the screen. Oil prevents the rust potential mentioned as well.
What I did to improve the "micro-particle filtering" on mine, I added a filter material (lawnmower air-filtering material) onto the intake vents of the breather to stop the critters and rocks. Easy to remove and clean. You just need to cap off the bottom of yours to keep the "air flow sucked in from the top backside" as intended. May not have the oil benefit, but looks more original than a K&N and has the tube-connection service that you're asking about too. Anything to cap off the bottom, like maybe a bowl or cake/pie pan, with the correct diameter, to be held in place with the clamp system, (that I see you still have), will work.
When attaching the oil breather tubing to the K&N filter, note too much suction can affect the oil in the crankcase as well as may not get "filtered", depending on location chosen. Don't CJ3Bs have a PCV system? Just offering options to "keep the look" as much as possible. Have fun with it.