if it were the case people wouldnt be using them on competition vehicles
You mean vehicles with engines that have to give up every possible half a horsepower and that are expected to be serviced every race and rebuilt every couple of hundred miles? Of course they would, that's exactly the sort of situation you would use a foam sock or steel gauze for. Race parts are for race cars, road cars need to last longer between services, much longer between rebuilds and the tiny loss of potential output is irrelevant in day to day use. That's why IMHO there is nothing better than an oiled cotton gauze for a road engine.