Yes, 3 oz is completely normal output. Breastfed babies typically take 2-4 oz when they nurse, which is why they usually nurse pretty frequently.
So the stripe down your nipple suggests that the baby is latching on too shallow. Instead of the nipple landing in the sweet spot on the back of the tongue underneath the soft palate, it's landing on the front of the tongue, underneath the hard palate. When baby sucks, the nipple gets compressed between hard palate and tongue, which causes the stripe and the pain and cracking. Now, it's possible that this is happening because you have short nipples and it's hard for those short nipples to reach the sweet spot. But it also could be happening because of a tongue or lip tie, which can prevent baby from achieving a deep latch. The clicking and air sucking you describe makes me wonder about a tie, since a tie can make it difficult for baby to maintain suction. If this were my baby, I'd want him checked carefully for ties by an experienced LC, a pediatrician, or a pediatric dentist or ENT.