I don't think it will help with fuel economy but it may help a little with power.
This is my experience with performance air filters:
I have a 2008 smart and compared the OEM paper filter against a BPP performance drop-in filter at the 1/4 mile. (BPP is very similar to the K&N version)(Both filters where clean and new the day of the test)
I swapped back and forth several times and the BPP helped reduce the 1/4 mile elapsed time by .2 seconds after I averaged the times for all runs.
I still have the car and never could tell if it helped with fuel economy.
Keep in mind that the filters for the smart and g1 Insight are very similar in size and they both produce about 70hp on one liter 3's. Gerbil power!