
Ultimately that's your call! If it were my car, I would go with the OEM paper until I could afford an AMSOIL Ea filter or something along the lines of R2Cs filter. I won't get the mpg increase as much per se, but I feel safe knowing that my air filter is doing what it is supposed to: filter! Now oil filters are fine for a while, while they are oily

That's when the dirt sticks to them and you have filtration, but like that article I posted, how much filtration are you getting from gauze? Again ultimately it's up to you.
Dirt is extremely dangerous to an engine, maybe more so than before. Think about it. There is tighter tolerances and very little slop. The parts don't really need to warm up to seal everything properly as it is already sealed. I mean my GT came with semi syn oil and they asked me right off if I wanted to switch it to full syn! That's unheard of in older vehicles because there had to be a break in period and then you had to get a certain weight etc. Whew rambling sorry... So imagine all those tight spaces and clearances being rubbed by dirt that came in through your filter... It's like a really fine sandpaper all over your engine. Is it going to happen? Yes, it's unavoidable, but you can control how much dust/dirt and what size gets in. Frequent oil changes help to keep the dirt and dust from accumulating too much. Obviously in Detroit there isn't as much dirt as me out here in the desert, but nonetheless.
So again if it were me, I would ditch it and get one of the above mentioned, even the Bullitt CAI comes with a paper filter that I am sure you could adapt. Or another option is to ask the CAI dealer that you plan on going through if you can just get the pipe and MAF and have them hold back the filter. See if they will knock a few bucks off, worth a shot and you can use that money for the filter you want. R2C doesn't put their prices online and the AMSOIL filter is 47$, I don't know about the Bullitt one, but probably about the same. So as a comparison the
K&N drop in is 45$. So you are spending the same amount of money really, but actually less because you don't have to buy rechargers and mess with the oil...
Forgot your original question... You will probably be fine with the K&N til summer. I would change it after that though

I wouldn't change back to the paper and get rid of the K&N. I mean when is the last time you cleaned it? if it's been a few thousand miles just open the airbox and see what it looks like. Really dirty, clean it. semi dirty you could wait and if it's clean, well lucky you!
No everyday driving won't blow up your engine. I am just talking about ruining your engine by slowly wearing it out with excess dust and dirt. Obviously that will take some time, like a few years, but yes it will take away performance eventually, blow up no!
Good luck in your decision!