Grubsnaek, yes it replaces the original air intake/venturi. The larger diameter of the tubing allows the pump to pull in more air. It basically doesn't choke/govern air flow like the original venturi does. If you don't put enkamat on the needlewheel and only do the venturi mod, it probably won't make that much of a difference. But, when you do put enkamat on the needlewheel, you can pull a lot more air with this venturi. You must do both mods to get the full effect.
As I remember a stock OTP 3000 pulls 10 SCFH(standard cubic feet (of air) per hour), after you do both these mods it should pull around 30 SCFH. So you triple the amount air your skimmer pulls.