Anyone know what this pipe does?

looks like part of the crankcase and fuel vapour recycling system.. if that is the case fuel vapour could be escaping into the engine bay so potentially explosive and you would not notice any difference to performance it is there for your safety. whatever it actually is it is best to replace a noticed split hose and you will be reassured nothing goes wrong from it.
 
It will probably be sucking air through that from the crankcase ventilation system TBH, causing poor idle, slow pickup and maybe slower thamn normal to return to tick over after reving
 

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