Okay, there are several subjects there that should be addressed.
The first one would be the stock airbox. I understand that the stock airbox does not seal perfectly at the joints. This is an issue, and it should be better sealed to keep dirt out. I think it should be possible to do this.
The stock filter element is probably not great, but it might be okay. The people over here with the export 500 models seem to do all right with them. Perhaps you could try an export 500 filter element. It would probably fit right in, since a lot of the 500 parts interchange with the 350. Or perhaps a thread in the UCE forum might yield a good element that will fit in.
Regarding the "closed in" aspect of the airbox, this is actually much better than an "open" air filter in a variety of ways. It pulls cooler air in to the system from a location which is not directly behind the engine fins. The "open" filter gets hot air coming right off the hottest part of the engine fins. Cooler air gives better power.
Also, the airbox and its connecting hoses support the carburetor, and help it to not stress any connector hoses between the carb and the head. In the Iron Barrel models, the airbox plays a very important part in this regard.
Also, the long connnector hose plays a part in the intake tract, which helps low rpm torque. The long hose to the airbox acts like a tuned port which assists low rpm torque to develop. And it works with the airbox to create a large volume of still air inside the intake tract, which is good for throttle response. Pod type filters do not have this, and often suffer from poor throttle response.
So, in my view, sealing the cracks in the airbox, and getting a good flowing paper filter element would be the right thing to do on that engine. Or else, for an upgrade, get an Ace Air Canister, which is what some of the UCE 500 people here have done. Look at its design, and it will show you what a properly designed air filter should do.
And to reiterate what was previously said, UNI filters have shown poor performance to me and several of the previous contributors to this thread, which indicates they are likely a poor choice from any aspect.
I wonder who it is that is trying to promote the use of UNI filters on your bike?
Whoever it is, I would stop taking their advice about engine matters.