I have the same engine too,
Before my engine swap ( like for like engine ) my original water pipe elbow that you are describing I left alone, but I agree it made it for a very tight turn for a rubber hose......but it DID work ok, albeit a bit of a snug fit up against the GRP side panel.
When I bought the "new" engine from forum member Gus, i noticed that he had shortened the said elbow by approx 2 inches, so I used that one & it does seem to work really well.
I,d suggest cutting & rewelding it, not sure if it would kink if you tried to bend it
edit.....it looks like Gus had chopped a bit out of the middle so that he didn,t lose the smaller bore end ( hope that makes sense )
hth
andy