It doesn't sound impossible, a lot of oil actually goes into that thing. They are not impossible to get but I forget what they call them now. If you want to do a custom install with a remote CDR and a different intake you want a GM 6.5 CDR, which has a bracket, a fitted hose, and most importantly, 1" nipples in AND out. The stock unit bolts up against the air box with a washer, and has a nipple on the in (bottom) side which goes to that breather hole.
The CDR functions as an oil separator and as a PCV valve, preventing your intake from drawing crankcase vacuum, which can happen on any diesel with a clogged filter, but especially on turbo diesels. It's not a very big oil sep for such a large engine but it seems to do the job.
You check compression with a diesel compression tester. They work like a gas one but they go into the glow plug hole and they measure higher pressure. Just bring it up to temp first, then it will have no trouble starting. You may have to bring it up to temp to get the glow plug out easily anyway. If you get stuck removing a glow plug, search for glow plug removal article.