oil filters, again !

[cas3]

here's a set up that was on a motor i bought. i didnt think much of it, besides being ugly, until the recent posts of melted bearings, and restricted lines to the filter. this one seems wrong to me. the line out of the rear of the block is just 1/4 steel line to the filter housing, no restriction, then thru the filter and back into the block. so, the gauge on top should only read any slight pressure build up from the the filter, and little or no oil is going to the crank? i havnt run it yet, but i am about to. f1a filter restricted? remove it? thanks, skip