Question: funky exhaust system opinions wanted

[89AKurt]

Previous owner had a new exhaust system installed, am thinking about a few things, need technical questions answered (?), and what might be a better option(s).

The heat riser valve (that what it's called?) is so rusty, it does not move easily, have in permanent open position. It starts fine, since I replaced the distributer and Holly carb.
(1) Do I really need it?
(2) Wouldn't it breathe better to have the 3" pipe go all the way from the header?


Again, they kept the original size pipe, that looks restrictive, obviously to squeeze past the starter. I read in other threads that headers running too close tend to fry the starter.
(3) Can't insulating tape, or a tacked on metal shield work?


Some of you may be shocked about this, they torch cut through the cross member.
(4) Should I be worried about this weakening the frame? Another thing that bugs me, is how the parking brake cables slide over the pipe, which could wear a hole eventually, and the pipe is rubbing on cut hole.
(5) Is this a good way to have more ground clearance?


I'm not interesting is restoring to original, but I do want to improve whenever possible. Would like at least to have 3" pipe to the header. Also have a weird desire to have the pipe terminate before the rear wheel, maybe on the driver side, just so I can enjoy the sound (a little different than the whiney whoosh of my MINI). LOL