I have used a K&N air filter in my '89 Mustang for well over two decades. I have one on my 2007 Mustang due to the Steeda CAI it has installed. I know all about them from a maintenance, use issues and power delivery aspect. IMO, they are more of a pain to deal with than what they return in power increases. They do coat MAF elements and will not filter optimally if not maintained frequently. They don't cause MAFs to fail. They cause them to read improperly over time if not cleaned. People can use whatever filter they choose but oiled, cloth filters are more hype and a pain to maintain than they might be worth for many.
Paper filters have so little oil, if any, that it is inconsequential regarding any effect on oil coating any component.