Good for you for testing the pump/hose set-up Bob, thats good assurance. Always test the equipment before testing the MPS. But make a more air-tight connection than to your thumb if any leakage is noted. Clamp that hose down on something smooth and solid for an airtight connection if it leaks.
Using only the mouth to suck on the MPS and test it is no indication that it is a viable MPS unless there is abolutely no vacuum level obtainable from the MPS and it is a complete leaker. Try mouthing on the end of your Mighty Vac pump hose and see how much vacuum you can generate. Bet the needle does not move at all, a human mouth is not capable of producing the required pressures of an MPS and it is not sensitive enough to detect leakdown rate either.
Ideally the MPS will not leak at all and a new MPS should not leak - Agreed
They can develop leaks not only from a cracked or cracking diaphragm, but also at other locations in the vacuum chamber just from age - around the case halves (O-ring), the plastic electrical connection and at the interface of the diaphram to the case. The seals can dry out which usually manifests as a slow leak and a slow leak may not be a cracked diaphram.
Opening and resealing them can be a good repair, just be sure that the sealer used is not too thick so that it affects the calibration.
As far as a functioning MPS goes, a slow leak is often quite functional because of the forgiving way the MPS works. It responds to intake manifold vacuum levels that pulse and vary in intensity - not a constant pressure like a vacuum pump will apply. So it may slip a little between intake pulses but as long as the loss rate is not dramatic it will be serviceable. I have personally run MPS's with moderate vacuum leaks - much more severe than Bobs is showing - for many years without any issues.
I would not say your MPS is 'good' Bob, and it is probably out of factory spec for ideal - but those vacuum loss levels are pretty good actually.