Yep, thats what I was led to believe many years ago. I bought the K&N and the guy dynoing asked to to test it against the stock filter so I took it in and he tested the stock, then the K&N then the stock with mesh removed. The stock and K&N were the same and it picked up a bit over 1hp with the mesh removed (negligable).. The K&N sat on the shelf after that. One thing I noticed was the flow area on the K&N was a lot less than the std filter with the plasrit surround taking up a lot of space (on the 98 anyway)...
Did a search as one of the mags did a test on filters a while back, couldn't find that but found this on the cbr site. (I feel dirty

)
K&N gets less hp on a 929
We ran the following tests regarding air filters on a stock 929 with OEM exhaust, Hindle bolt on and Hindle full system:
OEM filter 3 runs:
OEM Exhaust best run: 121.5
Hindle bolt on best run: 124.0
Hindle full system best run: 133.5
K&N 929 replacement filter:
OEM Exhaust best run: 119.0
Hindle bolt on best run: 121.0
Hindle full system best run: 129.5
"Whacked" filter (all paper removed, both screens remained)
OEM Exhaust best run: 124.5
Hindle bolt on best run: 127.5
Hindle full system best run: 137.0
These test were run on 108 Octane Sunoco "pump" race gas on a DJ 250 and were made without any third party fuel management system (i.e. PC111 etc.) The test site is 530 ft above sea level and all readings are SAE sea level temp and pressure corrected from "actual" 80 degrees ambient temp and 74% relative humidity.
The same set of tests run on Torco Stealth 14 followed almost identical curves, but yielded an average of 3 additional HP except for the full system with the "modified" OEM filter which produced 144 to 146 HP in 12 consecutive runs.
Pair system was removed (and sealed) while the flapper was IN during all tests.