If the pod is installed in the engine bay without a shield / airbox it'll draw in hot air and can actually make the engine lose power.
A panel filter (especially with a cold air intake to replace the intake silencer) is a cheap and easy way to get better flow and ensure cold air is being sucked in as opposed to hot air from the engine bay.
So Panel+Cold Air > Pod in engine bay*
* Heaps of people still go the pod in engine bay option - it's easy and cheap, gives you that great induction sound, improves throttle response (when cold anyway) only draws in hot air when stationary or in really hot weather etc...
But a properly installed pod in the guard (APS or similar) should give the best performance.
Do you need it? Probably not and run the risk of AFM issues or engine issues due to running lean.
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