OP, if you're good with a torch by all means replace the saddle valve as suggested. If not, just leave it using the theory of "If it ain't broke, don't fix it". I have one supplying the humidifiers on both the previous and current furnaces for the last 35+ years and it's been no problem. By all means change out that plastic tubing for braided.
I would. I've had trouble in the past with that plastic tubing starting to leak when moving refrigerators in and out.
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