No, the Kioti does not have the inner saftey element, but bobcat had it installed as part of their desing changes. If you want one see a Bobcat dealer.
$60 for the air filter? Bobcat sells the outer filter for less than $25. It is same one used on most of their excavators and smaller loaders.
Please, do not blow out an air filter with compressed air. The force of the air can easily blow a pin hole in the element allowing dirt to go through and destroy and engine. If you need blow one out, ues a low pressure blower such as a leave blower or shop vac with hose on the discharge side. Tapping them on the wheel or ground can cause the glue at the end of the element to break loose and provide a passage for dirt around the filter, so is just as risky as using compressed air.
When do you know when to change it? Watch for tell tell signs of exhaust smoke or engine seems to be slightly under powered than normal.
I checked my bill from May of 2012, the air filter price was actually $69.12.
It looks like the Bobcat two filter system is better.
But from posts on this thread and my conditions, I think my best solution is to be more thorough in evaluating when to change the filter. I imagine it will last a few years.