is that filter stock shape? or maybe previous owner did as a aftermarket things?
I actually plan to just remove the filter on mine and run the breather line to under the bike and let it drip.
not a good idea, you will then have an oily film all over the underside of your bike and on the rear tire.
There's nothing wrong with it. If you think 3 drops of oil MAYBE hitting the rear tire in 100 miles is a concern.....well good luck with that. It won't get the underside of the bike oily either. The filter I have on it now gets the bike very oily all over the front and side where the filter vents. With it dripping out straight down and no filter it won't.