I've towed several cars with low mounted filters like this. It takes very little water to hydrolock an engine. No way I'd install this, I'd much rather have an SRI- hot air and all because it's safer. That said, the OEM set up is excellent. Itst a cold air intake and safe too.
It depends a lot where you live and how well you avoid standing water and how well the air inlet and wheel liner keep water out of that area. I've had three cars with CAI with filters mounted in the bumper void in front of the tire and never had a problem. My wife drove one of them as a daily driver for 220,000 miles in all sorts of weather. We live in a part of PA that has a lot of flooding, but she has a lot of sense to never drive through any amount of standing water. That car had a really well designed water shield around the filter to keep any tire splash that came through the edges of the wheel well liner off the filter media. That was the Mazdaspeed AEM CAI on the first gen MS3.
The other two cars had custom CAI that I built, but I made sure the wheel liner was in place properly and the grille opening was blocked and they were drawing air from a scoop adjacent to the front of the FMIC. I put a small 1/2" drain hole in the backside of the scoop so any water that blew into the scoop would run out and not get carried to the filter. I've driven them both in torrential rain never had a problem, so I guess it worked.
I've had cars towed in that had engine damage from low CAI filters though, so I know it does happen. Most of them were missing the wheel liner entirely or it was flapping around unfastened or they admittedly tried to drive through flood water and forgot about their intake being low.
SRI is good though if you just want to never worry about it, but the CAI gains are too good to pass up for me. The gains don't always show up well on the dyno because the fans and hood being up don't simulate well the air temp differences vs a SRI that a car sees when actually moving down the road. Turbo cars love low inlet temps, and a CAI provides the lowest temps possible when actually moving.