Marlin, I'm no brake expert, but here I go talking out of the side of my neck:
A proportioning valve just regulates the amount of force going to the front and rear brakes, it doesn't totally separate the systems. Because of that if you lose fluid (particularly all of it) then the whole system goes down and your wife gets to ride the VX roller coaster in the parking lot.
I'm shocked that the stainless lines would do that. I can't imagine that they would blow out, and I have to believe that the line was kinked or cut by something under the car to make it fail. I suppose anything is possible, but those stainless lines should be able to handle anything that you might throw at them. Heck, the stock lines are just squishy rubber and they held up to a lot of abuse (I saw you wheel in Moab
) before you put the stainless lines on. When you put the new line in make sure that there isn't anyting binding the line or rubbing against it.
"The major difference between a thing that might go wrong and a thing that cannot possibly go wrong is that when a thing that cannot possibly go wrong goes wrong, it usually turns out to be impossible to get at or repair."
-Douglas Adams, Mostly Harmless