i put a cheapo CAI on my 4th gen prelude, makes a great sound. With 150,000kms on, the intake hasnt caused an issue. I have driven through massive puddles and the car has 300,000kms going strong!
The prelude is a good car to put one on, as you can hide the filter in the old resonator space which is protected from the elements.
Police have given me defects for the exhaust and tail lights but they could never work out if the Chrome pipe was stock or not. The filter cant be seen.
I personally think that even if the filter got wet, it would struggle to suck what small amounts of water could get through, all the way up the pipe.
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