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I've used exhaust wrap since the earl 1990's, and I still do. It works very well on stainless. You can use it on mild steel, but it will drastically shorten the life of the metal. Don't bother trying to keep moisture off of it. The exhaust is full of moisture, and besides, it's not the water but the Oxygen and high temp that eats the mild steel. Mild steel will glow red during normal operation and is prone to Oxygen contamination similar to a weld.
Wrap will bring O2 sensors and Cat up to temp quicker, and it drastically increases the life of other under-hood components that would normally be exposed to the radiant heat from the exhaust.
Gains in performance or scavenging are too small to measure even on a 500hp engine, and so should not be the reason for using the wrap.
Keeping O2 and Cat up to temp, and fast O2-switching is measurable.
Less degradation of under-hood components from radiant heat becomes obvious.
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