What is wrong if your 1988 Honda Accord LXi is getting oil coming out of the hose from the valve cover into the breather in the air filter?

Most likely the engine is worn out. Combustion gasses will leak past worn piston rings ( blow-by) into the crankcase. The hose is the PCV (Positive Crankcase Ventilation) hose and is designed to vent a certain amount of these gasses back through the engine. Sounds like there's just too much leakage for the system to handle now.

AnswerA small amount of oil leaking back up the tube isn't abnormal, but if you have a considerable amount, make sure the PVC valve and hose are completely clear and working properly.