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I don't know enough about heat wrap to know for sure, but seems to me it's not pourous enough. Heat wrap keeps the heat in the pipe and doesn't let it escape, right? Bike may not run if you choke it completely off. Kind of like jamming a potato in the tailpipe.
In the past I've used Stainless steel wool as a baffle wrap. It never blows out or wears out and works pretty good. You can get it from a professional floor care company, they make them in pads to scrub floors. In the fairly recent past there were mufflers that came with that wrap.
It changed the tone of the exhaust. Deeper, but still loud as hell. It might be a little quieter at cruise speed, but it still wakes the dead when you get after it. I can live with it...