I was thinking about this some more...
I did run a K&N in my 99... it seemed to work ok, never had any issues. I scrutinized this filter when I pulled it because of what I read elsewhere... there were definite pinholes in it. I have seen later K&Ns, and they appear different than the one I owned... maybe the failed engines caught up with them? FWIW, I put nearly 150k on that K&N in that truck (201k when traded) in every nasty condition you can imagine including a severe dust storm in northern New Mexico.
I did run a TruFlow (Amsoil oiled-foam filter) early on in this 04. 5... but cleaning was a pain. It was chucked...
I have switched back to paper, in a drilled factory airbox... silicon levels have been near zero. However, one thing I would argue is the statement that the factory setup will support 450HP, and here is why:
Using my 04. 5 as a base, when it was new off the lot, I could pull the filter minder completely in with a single WOT run on a NEW paper filter. At around 4k miles, I got tired of the filterminder constantly pulling in and I swapped to a different paper filter (Napa ProGold), and that did help the problem but did not solve it. I figured it was the airbox and filter, so I bought the TruFlow and drilled the box with 1-inch holes... problem solved. This was on a stock 600CTD truck with ZERO performance mods. I eventually switched back to a paper filter and it made no difference, indicating the box (not the filter) was the actual restriction.
Fast forward to six months ago, I started down the slippery slope. At a best case scenario (by adding advertised rating together), I'm seeing around 435HP at the crank (assuming 325HP stock, 40HP injectors, and a 70HP tune). I can pull the filterminder in with a single WOT run on a stock airbox and paper filter. This indicates to me that the filter is now the restriction (this is a Baldwin).
Now assuming that the vacuum required to actuate the filterminder does constitute a restriction, then that restriction isn't going to help with performance/mileage. I would say the airbox was marginally adequate for a stock truck, and I could see it being a detriment on anything past stock.
But at the same time, how many of us run at WOT 24/7/365???
And don't get me wrong, even with the filterminder pulling in, I will continue to run paper filters... I don't run WOT all the time! There was an airfilter study (on the net) done with a DuraMax filter that tested multiple brands of filters... for filtering, an AC Delco paper was the best overall choice.