a properly maintained and oiled K&N filter is more than sufficient to protect your engines internals and will not contaminate any of the upstream sensors. ive had my K&N drop in in my truck for over 3 years and about 20,000 miles and my MAF sensor looks just as clean and dry as the day i cleaned and dried it. my truck spends the majority of its time these days towing and hauling or driving on the beach. as such, my requirements for my filter are higher than many, but it performs as desired.
i would be more worried about a FRAM air filter letting debris into the engine than a K&N. ive seen FRAM air filters that dont properly fit inside the air box they were designed for, thus letting unfiltered air into the engine. at least my K&N has a high quality frame and seal that will hold its shape.
i didnt expirience any power or mileage gains with the K&N because there are none to be had. i got the filter because my truck sees a lot of heavy use in dusty/muddy/sandy conditions. it has already paid for itself in the money its saved me from buying paper filters. since i plan on keeping my truck for a long time, it will continue to save me money.