Can't really say much about the Buell but I have been using "asbestos" tape to wrap the exhaust on a classic car (Lotus Elan) for over 10 years to cut down on radiated heat damaging the glassfibre bodywork. I've also used it on the first couple of feet of my XR600 exhaust and will be using it on my current CCM.
The upside is it works. You can just about still touch it when hot (when its new, anyway) which beats leaving your skin behind on the normal pipe.
The downside is its quite expensive (in the UK), looks awful after being soaked in roadspray / dirt (not so much of a problem with a car) but prob the worst is that the pipe corrodes underneath the tape with repeated soaking. I've not used it with a stainless pipe but it really affected the XR mild steel one.
The stuff I've used (from race car suppliers at Silverstone) becomes fragile with age so if you take it off it fragments and you're back to the expensive part!