Exterior piping insulation is gone. Does this cause excessive condensation and reduce unit evviciency?

Is not a problem, inless the water is staining your pad. How much is outside about 3 ft?

The pipe on the larger line called the suction line is there for a purpose. One of the items it dose is maintains the line temperature of the returning gas that is necessary for compressor cooling. Another job it does is to stop or retard the condensation as you have found out.It is cheap and easy to replace.