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Originally Posted by sperry
IIRC, the normal reason for getting exhaust pipes coated/wrapped is because it make the exhaust expand more (i.e. retain heat in the pipe) for quicker spool. Not really for cooling the engine compartment, although that would be a side benefit.
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When you start running a car on track for extended periods of time, the real reason for header wrap/shield(s) is to keep the radiant heat from hitting everything around the exhaust. Even on a N/A car (I'd imagine turbo exhaust would be even hotter) anything that's not metal starts melting, believe me.
The first time I rode along in our racecar, part of my shoe sole melted off where it was touching the bare transmission tunnel/firewall...