Most IAT (Intake Air Temperature) sensors are built-in the MAF (Mass Air Flow) sensor nowadays. Physically moving the IAT sensor is too much of hassle, imo. Varying the resistor value of the IAT sensor should, in theory, trick the ECU; making it a much more sensible approach.
Concerning the CAI (denser air) in conjunction with a higher reported IAT is definitely an interesting approach. That being said, I believe other parameters are also required to determine the exact fuel quantity to be injected. Intake temperature is not the only variable to consider.
Perhaps a test is in order !