Dwaine, I've removed the stock airbox and I can say that those parts definitely function as as a muffler. If you decide to go with a pod you will notice a change, and different setups will sound different too.
Whether it sounds better or not is going to be a matter of personal preference, its pretty easy to to do an install by yourself so give it a go and see what you think.
Is the stock setup restrictive? Maybe. Enough to make a difference? No, at least not in my experience. This mod is essentially an aesthetic one, it will pretty up your engine bay and hopefully sound nicer.
As far as it negatively impacting performance, you'd have to do a pretty bad install for that to happen, so as long as you put a bit of effort in you'll be fine. I can post up a pic of my setup if your interested?
I should mention that I did notice better response and subjectively more power at high rpm's after I installed my intake, but on the same day I also put in new headers and exhaust. I personally attributed the differences to the exhaust mods but it is possible that the intake had a positive effect. The only way to find out is to do some experimenting :)