Since I'm running a TPI, I ended up pulling the stock return line in my new sender and soldering in a larger line. I didn't extend it much further than the stock one and haven't had any trouble nor does it sound like someone peeing in a stainless bucket.
That probably depends on how loud your truck is. I usually don't let the truck go below a half tank since I don't have any baffles. I've had this set up for about 8 or 9 months now with no issues. My old sender was broken so I needed a new one anyways, but with your TBI, you should be good to go with the smaller return line.