Alright everyone. Some agrees and disagrees.
I installed the K&N intake and here are my takeaways and replies to your comments.
This unit does pull fresh air (through a duct), so it is a true CAI. I had a "CAI" on my 4Runner which pulled from the engine bay and know that wasn't a true CAI. So, going into this, I knew this would be more true than my previous 4runner experience.
I agree the performance increase from one of these is minimal. Was I looking to make my Yukon track worthy and smoke rubber to annoy people? No. But the joy I get from hearing my engine when I get on it is huge. This makes the 6.2 sound as it should without an annoying, constant exhaust drone.
Installation was very straightforward and easy as long as you have some basic automotive knowledge. Like I said above, the sound is worth the cash for me.