Yes, I agree, fuel economy plummets in stop-start traffic. That's why hybrids like the Prius are so efficient, you can drive solely on the electric motors in traffic jams.
I wouldn't recommend the K&Ns; I tried to calculate it's given me only an extra <0.5 mpg but that could equally have been attributed to other factors such as driving style; The K&N part number is 33-2320, just a simple drop-in filter, you can buy from many sellers on ebay. A $40 K&N is around 97% effective, a good paper element is over 99% effective. That means the K&N is passing over thrice the amount of dirt which can't help the longevity of the engine and isn't worth the hassle when a new paper element is only 251b from Chevrolet.
Same with the LRRs; I've got steel wheels and went for a set of Michelin XM2 (175/65R14)
at a 6,000 b premium over the cheapest brand 'Thunderer'. Almost everywhere sells them like B-Quick etc. I'm hard pressed to even notice the difference, around + 0.25 mpg; maybe they make more difference in highway mileage. I wouldn't bother with them.