Here's a kit on a 1KZTE engine, He's using a replaceable element and kept his stock filter location. And has his oil return going back to the oil fill cap which is not that uncommon. He just put a T fitting on the oil pressure sending unit to access a output line.

It works just fine on these and extends your oil life and reduces a ton of engine wear. Of course this is not for everyone, A good high quality oil filter can do very well on it's own.