There is a circuit board trace from the lug to whatever it connects to, so I don't think adding a few inches of wire would hurt. Besides, you really don't have a choice.
The issue with bigger caps in the power supply is that the in-rush current when you turn it on will be higher, and you risk blowing a fuse or possibly a rectifier. Since your new caps are a little over twice the capacity of the old ones my gut feeling is that it will be OK. The exception would be if the design was poor in the first place and it was operating close to it's limits.
I would go for it.
The issue with bigger caps in the power supply is that the in-rush current when you turn it on will be higher, and you risk blowing a fuse or possibly a rectifier. Since your new caps are a little over twice the capacity of the old ones my gut feeling is that it will be OK. The exception would be if the design was poor in the first place and it was operating close to it's limits.
I would go for it.