Actually, a smaller crankcase with similar sized pistons would create more crankcase pressure... a smaller airbox would also have more effect. (pushing same amount of air into a smaller space creates more pressure, drawing same amount of air out of a smaller space creates more vacuum)
I tend to remove the hoses and breather boxes and replace with a K&N on my bikes, but I realize that I'm sacrificing a little bit of HP for looks and ease of maintenance.
My experience is that the Nichols breather valve does two things... It eliminates the oil leak that older bikes would experience around the base of the stock breather, it seems to control blow-by a bit better than the stock breather valve. I've also experienced that some other aftermarket breather valves allow more blow-by than the stock breather and some actually honk/sigh when the bike is shut off...
As noted above, because of the blow-by issue, if you choose to run the K&N it's probably safer if you run a section of hose and mount the filter a bit above the breather valve, instead of mounting the filter directly to the valve. This way a majority of blow-by oil just go into the hose and eventually back into the case instead of saturating the filter and eventually leaking on the back of the bike. I haven't seen this problem on my Nichols equipped bikes (I do have the filter mounted directly to the Nichols breather valve on my 888), but it's been an issue with some other aftermarket breathers (STM being one that I remember).
--Fillmore