It sounds sweet in my opinion... I removed mine and am not using any aftermarket filter at all right now... saving for my AEM CAI. But first of all, what type of K&N are you talking about? Just the stock sized one that fits in there now? Or the Cone Ghetto-Rig Replacement? With the one that fits in the stock air box thats there now... you *might* get like 2 hp... but mainly just fresher air and it will sound louder... You will notice the biggest sound difference with your windows down going up hills, especially when it shifts gears and your in low rpm's. I would definitely reccomend removing it and PLEASE DONT PAY 40$!!! Jesus that's rediculous... the only hard part is twisting that screw off but its easy to do... even if your car stupid. Here is a link on removing it...
http://www.angelfire.com/punk2/94accord/howto.html#res It also explains the matter a little too. Hope this helps.