Definitely put it on a separate drive, rather than waste space on your expensive SSD. There really aren't any benefits to keeping it there or demerits to moving it elsewhere.
Technically it could because it takes space like you said. When it populates the certain blocks, there will be less empty blocks to write data into. If you have e.g. 120GB SSD and 100GB of that is taken by settled data (OS, apps, iTunes etc; data that is not often deleted, meaning that it will populate the same blocks all the time), you will only have 20GB for other stuff. 34nm NANDs have ~5000 write cycles before the NAND wears out so with 20GB of free blocks, you would only have ~100TB of writes left. Without the iTunes, you would have 70GB of free blocks which implies to ~350TB.
However, in real world it's more likely that the NANDs will lose their charge before they wear out which happens in about 10 years. I would like to add that this is just how I have understood the way SSD works and this is highly theoretical. I'm not saying it's 100% correct and the controller may affect it as well.
Anyway, I would store it in a mechanical HD. I'm sure you have better use for the SSD space.
Yeah get em off for sure. Best to use that valuable space on scratch or something else. Considering my itunes streams perfectly well over wireless network between walls, it goes to show how little disk speed you need.