The difference between the stock and K&N filters for the "eared" version is negligeable. The cost difference isn't worth it as the stock Kaw filters are actually quite good.
The ear shave is another story. You pick up some HP for greater accelleration and stuff (or so I have heard) but the mpg suffers some.
I like the "eared" look so I'll stick with it. I'm thinking of doing some cosmetic changes to the ears but other than that, I'm sticking with the stock set up. JMHO.
Lots of people like the shaved ear look and it seems to work for them. However, unlike the degoat, it is more difficult to go back to eared especially if you destroy the surge tank in the process. Just my .02
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