so, its stainless steel, its sprayed with DEI water-proofing spray (not to protect the pipe but to keep the wrap from degrading)... run wrapped ss headers on my cobra for over 15 years... zero rot issues... looks as good as when i first wrapped it...
i do run some nifty carbon fiber heat shields for motorcycle exhausts where the piping runs under the trans pan (i have an aftermarket deep pan) and where it runs by my onboard air compressor... these provide an air gap between the multi-ply cf and insulator and the exhaust pipe... as well as the component I'm trying to protect...
I do agree if it was aluminized carbon steel like Flowmaster pipes/mufflers, the wrap would be a terrible idea...