You're spot on. Filling and preventing a negative pressure from forming in the
tank as liquids deplete - effectively stopping wicking.
I leave the hole open on the gennies I use at home. For no real reason, really. Just convenience of filling and no need for leak-proofing, I guess.
The gennies I use outside, I usually plug up the hole with a smaller hole. One too small for liquids to escape, but still large enough for air to enter. Doesn't take much. Such holes can be found in the nozzle of
e-liquid bottles. Some of them make great plugs. Others will simply break surface tension and promote leaking. Trick is to find the right one. The ones that look the most like a plastic syringe needle works the best for me.