I have heard that too, and it makes sense, as it points upwards.
Why not just use an extender for a typical pipe. I would cut it as short as possible and still get out past the tire, since it will change the 'tune' of any tuned pipe.
I run the Dynamite short dual chambered pipe on my Dynamite 12SPD. The pipe enables wicked RPMs. I have the identical engine in my buddy's XXX-NT with a stock RC10GT pipe on it, and it doesn't get nearly the revs. It does have more grunt though, I think. Kinda hard to tell cuz the gt is geared lower.
I have heard say that the rippled pipe produces really good torque, but I don't have firsthand experience.

I am with T-Bird...I just deal with an oily tire.

I stuck the stock losi pipe in to compare length. It is quite a bit shorter.