This subject has been beat to death, there is a lot of good info in the archives.
regurgitation:
the K&N material flows air with less restriction because it wide open, only catching the largest particles, if you look closely you can see the holes in the media.
if you ever get a chance check out paper media vs K&N's gauge under a microscope. it is eye opening.
I saw a taco that the filter had just been cleaned and oiled right before a unusually dry and dusty trip to Telico come back with a clearly visible dust in the air intake tube post filter. but this si less likely to happen on an 80 as it has a centrifugal pre-filter that catches most of the larger visible particles
this lower air restriction per square inch may or may not lead to any performance gains in the 80 series, one the surface area of the OEM filter is massive for the displacement so the filter is not much of a restriction in the first place, two the K&N for the 80 has much less surface area than the OEM filter. so the K&N has to have much less restriction per square inch just to break even.
the oil has been known to foul the sensor on Mass Air Flow meters (95-97) and make the door sticky on air flow meters (91-94), not sure about the throttle body but sticky oil that attracts dust cannot be good.
if you had a short lived street or race car where the air filter was too small then the oiled gauze might be good fit improving performance, it is not a good fit for a long life engine that is likely to operate in dusty environments.
pic, notice not only that each pleat of the OEM filter is larger but that there are many more pleats. much more total surface area.