I am an automotive engineer at Ford Performance. About 15 years ago when K&N filters were all the rage, we tested K&N filters as well as various paper filters for both flow and filtration abilities. The stock Ford high performance paper filters flowed better and did a much better job catching fine particles than the K&N filters. We didn't do this testing to prove how good we are, we did it because if the K&N tested better, we would have sourced them.
Our 526 HP, 8250 RPM GT350 uses a paper filter because it breathes better. A K&N filter relies on oil to catch the dust and if the filter has too much or too little oil, it will either choke flow or allow debris to pass through. No thanks... BTW, you don't see desert racers or off road motorcycles used K&N filters either.
As for K&N's making more power, they are almost always paired with a cold air intake which does indeed make more power than a restrictive OE airbox. Then again, try passing any kind of water fording testing with a cold air intake and see how long the engine lasts. Aftermarket intakes are great, but they come with caveats.