You're missing something.
The K and N flows more air than the standard setup.
The disadvantage is that it pulls hot air from the engine bay, because it's open. Hot air is not as good as cold air.
The solution is to direct cold air directly to the K and N via an enclosure and feed pipes from the outside.
So now you get more, colder air into the engine which is a double bonus.
Firms like Pipercross etc produce a complete kit that is an 'Enclosed cold air feed induction system' like the Viper. Basically the K and N 'in a box' replicates these systems but is cheaper.
Hope that makes sense.