I can't think of a good reason to change this part of your bylaws. I know the wording is long, but the text was written by the IRS to satisfy their own requirements. Why take a chance by changing it? If it's simply a space issue, include this language in your bylaws (for example): "Section IX, Conflict of Interest -- See attached conflict of interest statement." Then simply include the pages as an addendum.
I think it's safer to stick with the IRS boiler plate language, but we didn't include it in our bylaws. Our bylaws only had a general statement about all members adhering to the conflict of interest policy. We published the policy as a separate document. Just like cash handling. The bylaws don't go into all the details but reference good fiscal procedures. The cash handling policy has the details.