1. Don't expect much hp gains. Expect alot of noise.
2. You can go around without the bypass, I do in NYC, but you MUST be CAREFUL when you get torrential rains storms, with ponding. If the filter gets submerged you can nuke your motor. I almost did, but the car did start and that was after a large truck blasted/splashed my car from a large puddle and dumped gallons of water all around the car. Very nerve racking.
3. Little splashes from regular rain storms will wet the filter: NOT a BIG DEAL. You should clean the filter often.
Enjoy.
noel