Those bungs you see on the stock header are for sampling CO. The S14 engine has them, too.
The 318iS did race in Group A and Group N (I believe).
The same story is always repeated that the stock headers can't really be improved on, but I have never seen one dyno plot to prove or disprove this "internet fact." It would be very interesting to see some data to put this to rest. That said, the stock header is pretty nice, but maybe it can be improved upon.