Hey, I just wanted to drop my $.02...
As someone pointed out in this thread, if the filter is not the air flow/velocity bottleneck in the intake system, then the K&N will not help. On the home page, there is an article that discusses flow vs. filtration with various filters:
http://www.bobistheoilguy.com/airfilter/airtest1.htm
A good paper filter will ALWAYS have better filtration per square inch of media. While gauze will flow more air, it isn't THAT much more and I respect my car's engine more than a bit of air flow over stock.
The key to paper filters is square inches of media. I looked at many and finally decided on either Bosch or Mahle filters (would have stuck with Mahle, but they did not have the right size for my Infiniti G35). The Bosch and Mahle filters have more (and sometimes deeper) pleats than any stock. More pleats mean more square inches of media and therefore more airflow... WITHOUT compromising filtration.
The only time I can see filters (filters, not intake tubing) really making a difference is if you are using forced induction (or pushing factory supercharger/turbos SIGNIFICANTLY beyond OE boost). However, paper filters just don't look as cool because they lack the fun colors. I, personally, would rather buy a paper cone filter than gauze if I needed it for an application. I mean, hey, if they worked so well filtering, then they would be used everywhere, but they aren't.
As for the K&N's saving money? Dream on. With the average air filter running ~$10 and lasting ~20K miles, the ~$45 for a K&N air filter would take at least 100K miles before it would pay for itself. And that is not considering the cost in time and oil kits in maintaining the filter. THEN you will need to add in the difficult to measure cost of (IMO) reduced engine longevity.
Personally, I can think of better things to spend my money on than one of K&N's over priced filters...
Scott