I don't mean to belabor the point, but I don't understand your reply. The video that you linked to described how the breather valve results in water being sucked into the diff via the axel seals. Just moving the valve won't change this.
The impression I get is that the breather valve itself...
In the breather mod you linked to, aren't you just moving
the stock breather valve to a higher location?
Shouldn't you replace the breather valve with a filter?
You might want to check out the following:
http://www.4x4training.com/trainingclass.html
They're about 50 miles north of L.A.
There is also:
http://www.toyota120.com/forum/forumdisplay.php?f=18
There are a number of members in the CA & NV area
with many off road treks.