Well how do we explain the giant dragonfly ? If there isn't a higher oxygen content, how could itsurvive?
In a nutshell, because old assumptions about insect physiology are wrong. This is pretty well accepted now, and any old guard biologist that wants to fight a rear guard action against modern views bears the burden of proof. Prehistoric atmospheric chemistry has been a pretty active field of research in last few years (2 guesses why) and this giant-dragonflies-had-to-have-elevated-oxy hypothesis has had to yield to more recent data.
In a general way, this is an oft-told story: scientists advance a tentative hypothesis appropriately couched with reservations, popularizers report it as proven fact shorn of all qualifiers, high school teachers promulgate it as divine revelation of the god Science, and it becomes popular dogma. Beware of what "everybody knows".
I could spend a ridiculous amount of time documenting this, but this Wikipedia quotation sums it up pretty well:
"The large size of insects and amphibians in the Carboniferous period, where oxygen reached 35% of the atmosphere, has been attributed to the limiting role of diffusion in these organisms' metabolism.[citation needed] But Haldane's essay[12] points out that it would only apply to insects. However, the biological basis for this correlation is not firm, and many lines of evidence show that oxygen concentration is not size-limiting in modern insects.[9] Interestingly, there is no significant correlation between atmospheric oxygen and maximum body size elsewhere in the geological record.[9] Ecological constraints can better explain the diminutive size of post-Carboniferous dragonflies - for instance, the appearance of flying competitors such as pterosaurs and birds and bats.[9]"
from:
Geological history of oxygen - Wikipedia, the free encyclopedia
Even when this idea was accepted, it didn't apply to animals that actively breathe, as vertebrates clearly do, and as at least some insects are now suspected of doing, and the assertion was about "any animal" and specifically "Jurassic park Dinos".
And regardless of why, the more direct evidence on prehistoric atmospheric chemistry has to trump this rather questionable indirect argument.