Not only will it increase wear on the car it can hurt power over the long haul. It can also cause your Mass Airflow Sensor to get clogged up and not read right.
The last owner of my Corvette said he replaced the air filter. I did not see a sticker on it so incorrectly assumed it was a paper filter. I noticed that on very hot days or if I got on it hard it would spark knock. I went over the car and could not find anything that would cause it. It was still under warranty so I took it to 2 dealers and they could to find anything but agreed the spark knock was not normal. One said drive till the engine light came on or something broke. I was not happy with that so I went to do a oil change and removed the air filter to dust it off. Thats when I saw the K&N. I removed the MAF sensor and cleaned it with some q-tips, dont do this unless you have exp at it, and it fixed the spark knock 100%.
Once I cleaned the MAF sensor and put in a paper filter I have not had any issues with my Corvette since.
If you have modded your car/truck so much it REALLY needs more air; get a bigger paper filter and intake tubing.