Normally, on a healthy engine, combustion fumes escape past the piston rings and enter the combustion chamber. They are then directed back into the intake manifold through the PCV valve. A breather filter on the other end accepts fresh air into the crank case, through the breather hose.
If you're talking about the breather hose, then your situation is due to excessive blow by. On old engines, there is so much blow-by that the PCV system is in effect swamped by blow-by, and the crankcase fills with more fumes than the system can suck out. So it tries to escape any way it can - even out the breather hose. This is bad because the breather hose is supposed to take in fresh air, not dump combustion fumes out. What happens next, is the breather filter starts fouling, and eventually the air filter starts fowling. Another term is "throwing oil." The engine begins to bog down due to excessive crankcase pressure.
So, sometimes people will disconnect this hose to let the fumes escape, and it will run better because this helps release crankcase pressure and the engine bogs down less. Normally, you're not supposed to disconnect this hose because it needs a filter on it. But, if your engine's blow-by is so bad that it just keeps dumping fumes and fowling breathers, then your PCV isn't really helping anymore and it really doesn't matter if you leave it connected or not. My '77 LTD has a 351W and is this way. The blowby is so bad that it comes out the breather hose and the PCV hose at the same time. I just ran a 5/8" heater hose from the valve cover grommet down to the ground to dump the fumes.
This is all assuming you are talking about the breather hose, because this is the only case that would make sense. If you're talking about an actual vacuum hose, then it's not supposed to run better with it disconnected. Vacuum leaks are bad. If a vacuum leak makes your engine run better, you have a problem. My guess would be your idle is too rich, which would also contribute to the poor gas mileage you mentioned. You need to clarify which hose you are talking about.
Hope that helps, sorry but a long question needs a long answer.
