Can't help you with materials or attachment methods, but it's my understanding that the Gen II should have the upper grill blocked with the lower open because that is where the inverter is located.
The Gen III inverter is located behind the upper grill on the drivers side, so that section should be not be blocked on the Gen III.
I am using pipe insulation to block the lower grill on my Prius (gen III). I've also removed the rear wiper as I don't need to see what is above and behind the vehicle. The lower section of glass is what I actually look through when backing up, and that isn't cleared by the rear wiper.
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