I would personally choose the K&N's oiled cotton gauze filter over Pipercross' foam filter.
I have used several different types of filter in the past (K&N, Pipercross, Green, BMC) and always found fewer pieces of dust and debris in the intake tract when using K&N filters.
Now, like others have mentioned, the OEM paper filter probably does a better job at catching more/smaller particles. But providing you do regular oil changes, using an aftermarket air filter shouldn't really cause any problems.
I'll be purchasing a K&N panel filter for my GD1 soon as it's due a service in March. Maybe you can let me know where you are going to get yours from?...
Steve.