I chose to do the black wall overflow for a couple of reasons. The main reason was aesthetics. I think that having the wall gives the tank a much cleaner look. Without knowing that I built it, someone would look at it ind think that it came from the factory like that.
Second, I did not want to have pipes and hoses hanging off the back of the tank. With the custom built stand that this sits on you do not see any plumbing and again, it looks stock. I guess you could say that I am a perfectionist.
As for the plumbing, I used 1/2" bulkheads and things work well. I am pushing the upper limits of the flow the 1/2" drain can handle. I am running my return at about 350 gph, meaning I am turning over the water volume 100 times an hour. I can't imagine that you will be pushing more flow than that so you should be fine with 1/2".