Are there MPG improvements?
Some people believe that these filters improve MPG but the actual impact to fuel economy is unclear. K&N doesn't directly claim or boast of increased MPG. Personally I think if the filters did really increase MPG then the company that made them would be bragging loudly about it. Some users claim they have improved MPG. For example this article claims a 0.5 MPG increase on a truck. The governments Fueleconomy.gov site cited a study that found with new fuel injected and computer controlled engines that a clogged fuel filter shouldn't matter but for an older carbureted car the clogged filter did impact MPG. Since there are mixed opinions on this I wouldn't count on MPG improvement.
Cost benefits of reusable vs disposable
I can buy a K&N 33-2260 Replacement Air Filter
A standard disposable air filter would cost $10-11 on Amazon or NAPA. The typical paper filters are supposed to be replaced every 10k to 15k miles.
Lets say you operate your car for 150k miles and the disposable filters last 15k miles each. You'd need 10 disposable filters at a cost of about $10 each for $100 total. The reusable K&N filter would cost $40 and last as long. The reusable K&N filter could save me $60 over 100k of driving. Now keep in mind this is just one example and the air filter costs vary depending on the make of the car in question.
What do customers think?
I found a few sources of reviews of the K&N filters. Amazon reviews for the 33-2260 model were good with 13 reviews and over 4 stars. The33-2031-2 model had 23 reviews also over 4 stars. The site Car Review had over 100 reviews for K&N filters with average score of 4.1 out of 5. Thats pretty good review averages. Generally the reviews I find for K&N filters are quite good.
Bottom line the K&N air filters seem like a good deal. They have some solid benefits in increased performance and lowered costs plus some pretty happy customers. But I wouldn't count on an MPG increase.
[edit: I forgot to mention that I have not used K&N filters myself]