Wrapping exhaust pipe

Just throwing this out there, but I just spoke to my retired NASCAR guy (great stories) about wrapping exhaust pipes....good or bad?

His advice is as follows:

Wrapping a carbon steel exhaust will result in very rapid destruction of the pipe if the temperatures reach 1,000 degrees on the surface. Insulating wraps can cause the walls of the pipe to reach similar temperatures of the exhaust gasses inside and if it reaches close to 1,000 degrees, that steel will detiorate rapidly.

If it is for protection, use heat shields instead. If it is to reduce heat around the system, use stainless steel exhaust piping.

(We have discussed this in the past and I thought that I would throw his advice to the mix.)