Everyone has a different opinion. Myself I would remove it as it always leaks and causes more problems. That said, you could install a functional one if you were worried about water in its place.
................................................... A Racor filter with an integral water sensor will do a better job filtering your fuel, give you the water in fuel alert and won't screw you over by letting air in. .......................................
the a/c thing; the a/c shakes the engine some at idle but excessive shaking could be your motor mounts. they may want changing.as far as the fuel i've in the past 5-7 years had a bad load of fuel, i always go to a station i know. not just a random station or cos of a lower price.
Yes the Cummins and my old Chevy diesels have the water in fuel indicator and I've never gotten an alarm ever. .............................