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The only thing you should be insulating is the exhaust side of the engine, preferably ceramic coated as it holds in the heat best. Insulating on the intake side, and that includes the intercooler piping, should not be insulated. That's why aluminum is used, it dissipates heat faster then steel. The warmer the air going into the engine the less dense it is a thus the less horsepower it will make.
Incorrect...

While there are some early 99 trucks with aluminum IC pipes from that point to current they are steel.
 

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No Kidding? They are steel? Hmm, is there any benefit to steel? I have an early and they are aluminum. I thought they were all aluminum.
The steel is stronger, and easier to work with. There is no down side to the steel pipes, no upside to the aluminum.

There were some issues and continue to pop up from time to time of the IC tubes getting a hole in them from the power steering pump line.
 
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