this is the tsb i found
2001 Chevrolet and GMC C/K Pickup Models
with 6.6L Duramax™ Diesel Engine (VIN 1 -- RPO LB7)
Condition
Some customers may comment on decreased engine performance/power on the above vehicles with the LB7 Duramax™ Diesel engine. The Malfunction Indicator Lamp (MIL) may be illuminated with DTC P0101/P0103 set. The customer may also note that the "filter minder" on the air cleaner assembly may indicate the filter element needs replacing at very low mileage. These symptoms are more likely to occur when pulling a trailer on wet/slushy roads, but have been reported in heavy rain, at curb weight, during highway driving.
Cause
The LB7 diesel engine creates very high air flow under load. The primary source of inlet air to the engine is through the right front fender. The tires kick up water spray on wet roads which is pulled in with the incoming air from the right fender opening located over the front bumper. This ingested water may soak the airfilter element causing increased restriction. This restriction may activate the "filter minder". If the water continues past the filter, wetting the mass air flow (MAF) sensor, the MIL may illuminate.
Important
If the vehicle is being driven through snowy and/or slushy roads that have been salted, the MAF sensor may be contaminated with soluble road salt.
Correction
Install a revised air cleaner assembly, P/N 25345138, that has a
lower incoming air velocity. Also, seal off the right inner fender panel air inlet holes and reprogram the ECM by following the procedure below.
here is the aftermarket intake.
How is this any better? Is it because its primary source of air is not the fender and because it can draw air from just about anywhere?
I see where it can become restricted and cause a lack of performance but that doesn't necessarily mean its letting water into the engine. Its just not letting in enough air.