Never much understood the debate about header wrap causing headers to rust out.
Comparing strictly a set of painted headers vs. painted wrapped headers.
Paint is gona burn off and you'll end up with bare steel which will rust. Some say the the wrap holds moisture against the tubes which causes them to rust. I just can't understand this claim. Considering how hot your exhaust gets, your tubes and wrap will be dry in a matter of seconds. In fact, when installing the header wrap, its common to make the wrap wet to allow it to stretch. When drying it shrinks and becomes very tight.
I have also seen the warranty voids for using it but to this day do not understand why.
I have it on my blazer and I do like it. I have it on the headers alone from head to collector. I can see it being somewhat of a fire hazard if oil sprayed on it but again, oil or some other combustible material sprayed on a hot header is a fire hazard regardless.
One last thing, Using it on another part of the exhaust or another component such as a starter. Something that doesn't get hot enough to burn off the moisture, now theres something that may speed rust.
just my .02 worth of ramblings.