Couple friends of mine that have been into cars longer than I have all assured me that water is not a problem unless your filter has the chance of getting either soaked in water (ex FLOOD WATERS 2feet deep or more) or extremely damp for a long time (ex a leak from the top down or constantly driving through huge puddles for like an hour.
They said that if it gets wet, most of the time it'll just go right through or evaporate quickly with all the airflow that's there or the engine might stall. Let it sit for 3 mins and start it up again, your fine. Usually. If you plan on doing some off roading or routinely driving around in flood type waters you don't have to worry about it.
Besides, the bypass valves take away from the intakes ability to add power... so the intake add's power and the bypass valve takes that power right back away. So your not really helping much. I'd just go with the AEM CAI single tube, it's a proven winner. :thumbup: