Brand new Racor's are not that much money. I run a small R12 with a 30 micron filter. This small racor is capable of filtering 15 GPH and a 3B only burns about 3 GPH on the highway. All the bigger versions do for you is allow longer run time before changing and filter more fuel before changes. Plus some of them do have a primer pump.
Running it low on the frame is not necessary. Any restrictions or vacuum imposed by the filter will happen no matter where in line it is placed high or low. I placed mine on the firewall below the wiper motor on the passenger side. The factory fuel line runs right through this location by the way. It makes it easy to check the clear bowl for water and debris whenever you open the hood.
Virtually every diesel boat I have worked on runs a Racor system and problems are few and very far between. If it is not working, fix it. I just didn't trust the factory seperator, it's not in a convenient location and it's easy to forget about. And like mine, what if the warning light is inop but your seperator fills up? My understanding of the filter elements in Racors is that they will swell shut (cutting off the fuel) if they get too much water in them. Would like to know if this is true but don't want to test it to find out.
Does the factory seperator just turn on the light or does it prevent the motor from running?
They both work, it all comes down to personal choice.
Tony