That's called an 'elephant hose' in some communities in the diesel world and it works just fine. My Cummins came from the factory like that, it spits crap all over the front diff cover...keeps it nice and rust free
Anyway I had it on my '99 E300 for a long time and it worked just fine. No smell is noticeable if you dont overfill your oil when you change it, and it keeps the black goo out of the engine and on the ground where it belongs. It's a 10 dollar mod and worth every penny IMO.