If the MOT valve is stuck closed, you can leave it alone. This seals the system and prevents a vacuum leak to the engine.
If the MOT valve is stuck open, you need to seal it off. Don't replace the MOT valve without also replacing the charcoal canister; if you saw charcoal particles, the canister screen/mesh has failed and you'll kill a new MOT valve. Just seal off the system, it doesn't need to be functional.
Good question about where to feed the smoke into, the metal vacuum line for the brake booster would be ideal. Don't think you want to use the MOT pipe because that goes to a fitting with a restriction, IIRC, on either .97x or .98x engines (one has the restriction, the other does not, I forget which is which).