Yes Keep them away, could stop fish from inhaling bait or even try swallow the whole thing. Distance is upto you  But no more than half the trace length. I use 2 soft plastic tubing, cut into 4mm length, can make em longer or shorter. I made it 4mm as float ahs bigger hole.

   Found tubing at an Engineering supply place...

Do you keep your floats away from the bait/hook? The photo shows a ~10cm gap between float and hook... But not sure if the float is fixed in place, or underwater the float will move to touch the hook?

I use pulley rigs. Simple reason is it goe's out as 1 piece, aerodynamic to get you a little further out there.. small baits is key. But even a whole pilly will fly good if cotten on properly, & wont do the helicopter... Used to use BM longreach ones & they work a treat, I like them cause of the 2 floats that come with it. Fish don't mind em at all. Even the yellow, pink, red & green float balls work too.

Other Rigs like Iki & Bite brands work as well. Have lately started to make my own pulley rigs using gemini release clips & also using an impact lead, use 7/0 recurves, have tried 5 & 6/0, but eehhh frak it, if fish is big enough 7 will do.. like the rig about a metre long & have started using the larger float, still fish don't mind it. Why a float? I mainly fish the Rangaunu Harbour inlet, has a little bit of current, the float keeps bait off the bottom. Trace length, a work in progress still. as long as it is under a metre or pulley wont work the way it should.

The other rig is the "90 Millie" special, it's a ledger & if I could snell a hook properly I would use it more, using a uni to tie it on, will see the knot go to the side bottom of the hook eye, can be diff between catching & feeding the fish...

PS: I cut off the hooks that come with the pre made packs....