Ah, now I understand. I'm pretty sure the idea of adding the old pump teed to a new compressor would work. Sounds like you have the pressure switch setup already figured out. I haven't read anything about reducing the pressure to extend the life of the compressor, but it seems to make sense.
On the condensation question, you're going to get condensation however you run the lines. Actually, running through long lines is a good way to cool the air and remove the condensation. Just plan for it by sloping the piping to multiple drops and drains, and you should be fine. In my shop. my compressor is only about 15' away from where I use most of my air. To cool and dry the air before it gets to the end of the hose, I'm running it through about 50' of 3/4" steel pipe, and there are about five water traps along the way. (Still, most of my water collects in the tank, which is a good thing.) This is the first thing it runs through after leaving the compressor...
The condensation collects in the drops at the bottom of the loop, and is drained out via the ball valve at the bottom right.
And here's the end of the run where I plug my hoses in. The blue cylinder is a desiccant air dryer, but there's a drain drop before it and a water trap/regulator after...
Kind of overkill for my needs, but I have really dry air coming out the end of my hoses.