Yep, if you are drawing hot air in the system it will reduce timing therefor reducing HP/Peformance...
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Well when I installed my Airaid intake system I disconnected the battery then immediately did some highway driving after the battery sat disconnected for about ehh 2 hours. I instantly felt a power increase with better throttle response and fuel economy! I think the problem with the k&n intake is that it is such a big system the ecu has trouble reprogramming because of the huge high flow filter and intake tube. I would suggest a tuner and possibly exhaust to get the most out of the k&n. I guess it wasnt designed to be used with the stock tune like the airaid.