I have thought about the coating myself to decrease the radiant heat from the exhaust to surrounding objects, especially the carb, and to a lesser, but, close second, the shock.
I believe their big claim to fame is the following: Lower radiant heat, and for a car, lower under hood temps. The exhaust gasses remain hotter longer, IE less dense, in the exhaust system which promotes better flow and scavenging.
I have seen claims by some coating compaines that claim a reduction in the skin temp of headers of 50%.
However, further word of mouth research has indicated that the coating, when hot, is suseptible to staining, or blemishing. Which is highly possible in dirt bike application where contact with different types of bushes etc.... Might cause them to get ugly over time.
As an experiment, recently I bought some DEI header wrap. It comes in a lighter color and a dark grey color. The grey color has the highest heat rating so that's what I used. I originally just wrapped the 2 into 1 collector as it is in close proximity to the carb. After warming the bike up it is readily apparent that this stuff works. After riding for a long while the carb is noticably cooler to the touch. I did not use a heat gun on it for exact readings, but, the difference is obvious.
I went ahead and wrapped the rest of the exhaust up to the head pipes, short of where the wrap would get shredded by debris coming off the front tire. Do I notice a difference in power? NO. Don't care either, but, the radiant heat is greatly reduced and that's what I was after.
It's definitely not very pretty, as you have to hold this stuff on with safety wire. The up shot is that I can take it off if I don't like it.