That's the first I've seen of modifying the stock intake like that. In theory, it should be fine as long as it's tubed low enough not to allow hot engine heat in. And obviously, secured well enough that it can't be dislodged.
I have a similar setup. SCT X4, 93 octane tune, cooler plugs, thermostat, 3 bar map, and oil catch can. I've ran it for about 5 years now without issue (daily driver). Personally, I like the idea of the 170 degree thermostat. Here's what it does:
A factory thermostat opens at around 190 degrees, so the radiator can start cooling the engine. Engine temps can get up to 220+ before they begin coming back down. You'll have good visibility of this when you get the X4. With the cooler thermostat, it's going to open at 170 degrees so the radiator starts working sooner and keeps engine temps cooler. My max is usually around 200ish.
Now, some people think that the cooler thermostat is counter productive. The factory wants the engine to get to 220ish so it should. Others think it's better. More wear on the radiator but less wear on the engine. Cooler engine = more power. I can't say definitely which is best as I'm a hobbyist, not a mechanic. But I can say for sure you will see differing opinions if you ask enough people.
As for the cost of the thermostat, I think you can find it elsewhere for cheaper. There's nothing proprietary about that one. You just need one for the car that's rated for 170 degrees.
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