If that's what it's supposed to do, then it doesn't do it very well! Cotton gauze filters still end up with pretty big holes in them even when they're oiled.
I've had two different vehicles that I had oiled cotton gauze filters on, and BOTH had a layer of fine dust on the inside of the intake tube when I took it off to clean the filter.
'05 Mustang GT Premium
CMS Stage 1 cams, C&L Racer, Lito tune, Jeg's oil sep, CMDP, SR UDP's, JBA stainless LT's & catted H, Magnaflow resonators, MBRP axle back, BMR springs, Koni STR.T, BMR LCA's & backets, J&M upper & mount, J&M Al panhard, DIY panhard brace, Steeda Tri-Ax, smoked corners, Raxiom Vector tails, Brembos, S550 GT Premium wheels, 2010+ door panels