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Heat does not damage the engine, it reduces the power produced.
More heat means less dense air (less oxygen), so there is less power produced in combustion.
I found with my old tune the car felt slower with an open filter in the engine bay, but I'm in Australia, so it can get fairly warm.
Best option for me is PD160 intake section into stock box with jabbasport style filter and top of air box coupled with Forge 008. Not much dump noise, quiet for traffic, reasonably loud when pushed.