I think that the paper versus oiled filter element topic is as old as what's the best beer. I have seen it tossed around and around for years now on bulletin boards and haven't seen too much evidence IMO as which is the perfect choice for
all applications
all the time. I have seen air flow tests done (in perfectly controlled settings mind you) that say both are superior to each other. I guess it depends on which brand's own testing info you want to believe. And, mainly what you plan to achieve in the long run.
What I do know from first hand, are dyno results showing HP gain; is that a recently cleaned oiled filter flows better over any paper element we could find. But an oiled element that was dirty (say like 5000+ miles worth) produced the same as a clean paper element. I'd assume they'd stay close to the same the dirtier they got but we weren't looking for that info. This was in a circle track scenario, and about 8 years ago and I know there are some new styles of elements out there. Ford has one they claim can go over 100K. Now I know day to day driving is different than a race car, but I know of numerous teams that run dirt with oiled elements when legal in their rules. So there must be an advantage. And these are guys running stock cars, sprint cars, off road vehicles, etc. A race engine turning 7K+ RPMs for a few hours, with all the on and off the throttle variations in between is a lot more wear and tear than most mall cruisers see in 100K miles. And not every race engine gets rebuilt after every race. If you cleaned one after every off road run (many clean theirs after every race for example) you'd likely enjoy the benefits of the filter's intent. The issue is many daily driver users don't clean theirs regularly enough to make it worth while. In fact many likely buy them for the selling point idea that they can pop it in and forget about it for a year or more, which is false. They need to be checked often (at least every oil change) and cleaned realistically every 10K (or sooner) in our environment, not counting any off roading use. My K&N's have lasted for quite some time though, maybe they will last as long as they claim which is 1 million miles.
Supposedly, the paper element companies claim they trap more dirt than a oiled filter does. But the funny thing almost every paper element company now has their version of an oiled element now. So did they give in to the masses or what? But they claim they trap more debris, which in turns stops it from getting into your cylinders and scratching them. Maybe, but honestly, I have never heard of an engine dying early from too much cylinder wear from air born debris. Seems it usually comes down to an oil issue which is a whole 'nother can of worms. Oh, and oil filters too. As far as water, if you are going in any deep enough to get through the air intake system to cause damage (mainly hydro-locking), you should have a snorkel. No stock or after market air system is going to stop that though. Also, keep in mind you can inject fine water mist into a gas or deisel engine and improve it's performance. That's why engines tend to run better in high humidity areas.
If you want the benefits of increased air flow, then maybe an oiled element is for you. I'd recommend using a mesh pre-filter as well, it saves the element from most damage and cuts down on cleaning the element so frequently and supposedly doesn't restrict air flow. If you want ease of maintenance, then I'd say go with a good paper element. IMO and from the independent data I have seen, Wix makes a pretty good one as far as trapping debris and allowing for maximum air flow. BTW, they are one of the ones to claim they trap more dirt than a oiled element while still providing max air flow. Also, think of a vehicle's engine as a big air pump. The more you suck in (intake), the more you have to pump out (exhaust). Any restriction along the way (small bore throttle body or small carb, stock exhaust versus headers, etc) likely makes shelling out the money that most air filter systems (regardless of element type) cost not worth it unless you make upgrades down the whole system. I know you can buy K&N "like" filters everywhere, but remember you get what you pay for. Summit Racing and Jegs make some decent ones from what I have seen, but I'd save my money on the ones they sell at Auto Zone and Pep Boys. Unless you just want the look of a K&N filter for some reason, then well it's your money.
I run Wix (actually Car Quest brand made by Wix) in my truck and Karen's Jeep. They last a long time and I'm not looking for any gains in my HP from those vehicles. I check them every oil change, knock the loose stuff out and change them when they get grungy. I run a K&N in my Scout, and ran one for a long time in my Gran Torino till I parked it. Both of those vehicles have performance upgrades to where running a K&N makes a noticeable difference in power. But cleaning them every 6K miles or so and re-oiling them is a PITA. Then again hearing the secondaries on a 4 barrel carb open up at full throttle (something I have never heard with a paper element) is sweet