Ign timing is not going to change, or stop, fumes exiting the breather unless the ign timing provides a large change in idle rpm. This is not an ign problem.
It sounds like the engine is worn & you are getting more crankcase blowby, which shows up as fumes exiting the breather.
At idle, the PCV is only able to suck in a small amount of the fumes, & the rest shows up as fumes at the breather. By eliminating the PCV & putting the PCV hose directly into the grommet, you will suck out a lot more fumes & less fumes will be seen exiting the breather.
Even though the engine is worn, it can run ok for years to come but might be down some on power, foul spark plugs etc.