Alright, so I have my 1990 EX500 with about 12k on the clock. I got it early last summer and had a blast riding it, but didn't like how quiet the exhaust was, so I put on a full V&H exhaust. Made the bike louder, but lost a little low end (expected) and developed a rather annoying flat spot from ~6800-~9000 rpm. So, after asking some questions and doing some research, I determined that a jet kit should solve the flat spot. So, I got a Dynojet Stage 1&3 jet kit for my bike for Christmas Last weekend, I went back to my parents (where the EX is hibernating for the winter) and pulled off the carbs. Much to my dismay, when I took out the airbox, I discovered an air filter that looks like it was the factory original (foam style, not the currently used paper style filter). About half of it was completely gone, and the other half was only barely there. It's my own stupidity for not having checked that when I purchsed the bike

, but the dealer I bought it from assured me that all standard maintenance had been done

Lying bastards...Anyway, thankfully the carbs look pristine and the bike has run wonderfully since I got it.
So, after taking the carbs off and looking through installation instructions (what came with the jet kit, as well as an online walkthrough that is EX specific), I decided I really didn't wanna mess with the carbs. I also decided that I might as well go ahead and get a new intake and then have the stage 3 kit installed, because I figured this would yield the greatest results. I ordered K&N cone filters from Dennis Kirk. I called around to a couple places to get price quotes onthe jet kit installation, and every shop was around $60-$65, which seems decent. However, the last shop I called, the guy asked me what else I had done to the bike, and I told him full exhaust, and that I had an intake on the way. He asked what I used the bike for, and I told him daily riding with the occasional backroad jaunt (whenever I have time). He told me that he has done intake/exhaust/jet kits on many EX500s, and the only people who were satisfied were those who used their EX on the track. He said the mods give it great performance up top, but take everything away from the bottom end, and make the bike just no fun for daily riding. Anyone else done these mods and have any input?
Sorry for the novel, but I can't decide what to do. I called Dennis Kirk and my K&Ns have already shipped, so my only option there is to return them (not sure what their return policy is, but the lady said I could send them back and get something else) and get a K&N stock replacement. Would getting this and having the stage 1 kit installed be my best option? Or should I eat my losses and sell the jet kit for what I can (special ordered, non-returnable), throw the carbs back on, and live with the flat spot? Thanks guy.