As long as the new tank has a water dish they can easily get in and out of, there's no real benefit keeping them in their current setup. The change might also help lower with fruit fly suicide rates, if those are an issue. Paper towels and a water dish (I used a lid, frequently refilled) appears to be pretty standard, to make sure they don't accidentally ingest something they shouldn't, but they can be raised them on both fine substrate and paper towels. It seems easier for them to spot and run down fruit flies on the flat paper towel, though.
Depending on your substrate, dehydration can be more or less of a risk. I had no issues with frequently sprayed garden soil last year, but paper towels, even if a couple layers thick, dry out much faster. You might consider wrapping some or all of the lid with cling wrap to help keep in moisture/humidity if you go that route. If you take care of them twice daily (which you should) there's really no reason to chose soil over paper towels. While I've yet to hear of anyone coming home to a cage full of dried out ex-toadlets, a healthy dose of paranoia certainly doesn't hurt anything.
As for the tails, well... it's your call. Once they get on land, the tails should be absorbed in a day or so, during which the toadlets shouldn't eat. The window is so short I think you could probably do either without any issues, but I think the real distinction to be made is if they're hopping around on land, not if they have their tails.
Also, damn Texas has a lot of species of Bufo. I didn't realize Cane toads originated (in part, anyway) from the continental US.
edit: On your fruit fly question, they're going to do what they want.About the only thing I discovered helped with escapees was just slowly feeding half a dozen at a time and letting the toadlets hit them hard, or feeding the toadlets in a sealed tupperware container. Maybe someone has had better luck than me playing the pied piper for flies.





About the only thing I discovered helped with escapees was just slowly feeding half a dozen at a time and letting the toadlets hit them hard, or feeding the toadlets in a sealed tupperware container. Maybe someone has had better luck than me playing the pied piper for flies.
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