Hey Rick. Absolutely correct. You're bypassing the canister when you re-route the vent. Since there is then, no more need for it, you disconnect it and remove it. One of the lines goes to the purge valve. You plug that line, leaving the purge valve installed and electrically connected. The remaining vent line hose that you didn't use can be removed and discarded.
It's not that critical to route the vent line to the rear of the machine. Some folks are more comfortable with that arrangement. That's OK. I left mine going out the bottom in it's original location and haven’t turned into a ball of fire, yet. The operational problem that this solves is that the purge valve is only connected to the rear cylinder intake for its vacuum source. It's a pretty big "intentional" vacuum leak for the single cylinder to handle. Any issues with the valve or canister at all, and you end up with the rear cylinder running lean and tripping codes. Plus, it just runs better. This system seems to work OK on the 1330, but on the 998 - not so much.