I have had the SAME KnN air filter on my 95 neon since I bought it in 98. It had 31,000 miles on it, and now it has 146,000. I live in the pacific northwest and when it's not raining, its very dusty in this area. Also, I work at a rock pit. You can imagine the insane amount of dust I drive my little car into everyday to work and back. And I did not have any off-the-chart silicon content in the UOA. The filter got VERY dirty after about 10,000 miles and then I would clean it. To help extend that a little bit I purchased KnN's pre-filter wrap for the filter. It helped it a lot. It's much easier to clean. And goes longer between cleaning. Around 13,000.
As far as HP and mileage gains, who knows? My 'buttdyno' seemed to notice a gain in the high end. Im sure it does vary from car to car.
I've been using KnN for years, and havent had any problems as far as damage to the engine or shortening the life of one, at least not yet. As many miles that I've put on the neon, the compression is still in the 190's for all the cylinders. So that talks to me about KnN.