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I have used a lot of my tools with the quick connect right on the tool and don't see any problem with that. On the other hand, a number of my air tools have a six foot "whip hose" with a small swivel on the tool. The only reason for this is that it makes the tool a little less cumbersome to use because you are not dragging the larger, heavier main air hose. Especially valuable in tight spots. Sometimes makes the difference as to whether you can even use an air tool.
With regard to the original post, one thing to consider is the humidity in your area. If it's high, just be sure to drain your tank frequently. But for occasional use, if you oil your impact each time you use it and keep the tank drained that's all you have to do.
Lots of good advice. My dad has a few compressors and has the water trap right at the tank. It does okay until you really put it into heavy use. When I paint, I connect a hose at the tank then stretch out the coil a little on the floor then I connect another trap/regulater and another air line. I use a bucket to hold that 2nd/middle trap. This setup gives the air time to cool and condense in the 2nd trap.
Where I used to work we had 2 sources of air. Our 'shop' air and the facilities 'plant' air. Our shop air had the compressor air running through a cooler, into a tank, into a 2nd tank, and on to the shop. We also had the little valves that would open up the drains when the compressor shut off for a second. NO moisture problems at all! The 'plant' air ran through the hot plant the into our cool shop. moisture would condense on the outside of the black pipe! It would constantly fill the water trap with rusty water. We had to start manually oiling the air tools.
I think that it would be a good idea to oil your tools before use and before storage. It could only prolong their life!