My 454 Suburban runs 205 all the time... except when REAL cold, then a little cooler. Hood insulation is just for sound really, a little to keep the hood cool. But, if your paint bubbles or blisters from the engine heat... you have other problems to worry about. Neither my Blazer or Suburban have hood insilation anymore. Just a sponge in my opinion.
What temps are you running?
Ken H.