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The idea of wrapping the pipes is actually not to hide bad chrome, but to keep heat INSIDE the pipe to improve exhaust gas flow rates. Hot pipes and hot gasses flow faster, therefore better scavenging, than pipes that bleed off a lot of heat to the outside air. It's an old hotrodder's trick to improve headers on V-8 engines. It works, I guess, but the wrap doesn't last long. It's not duct tape, but a high temp fiberglass wrap designed for the job.
http://www.summitracing.com/search/Department/Exhaust/Section/Heat-Protection/Part-Type/Exhaust-Wrap/?Ns=Rank|Asc&autoview=SKU&gclid=CMW36vqFkLICFacWMgodjEsAgg
I did it on my H-D drag bike, but it would burn off after a few runs, and sure did stink when it was new!
I am not fond of it either; however, I have seen it used for heat shielding, as a way to cover pipes that are in poor shape( chrome in bad shape, etc). I know a fellow that builds exhaust out of stainless steel tubing, does beautiful work, fantastic welds, but covers them with heat wrap as a cheaper alternative to custom building heat shields. But, like all bike (and vehicle) mods, to each their own. I will not pass judgment on anybody else's bike; if they like it or it is what they can afford, so be it. I expect there are things on my bikes that don't meet the approval or look right to others, but too bad; it is mine, if they don't like it, look the other way. 
Regards and such,
49Reo
once more we have a good question and I like yourself don't know.
Personally I do not like them , they look like crap to me. Almost like the guy can not afford a decent set of pipes and he has wrapped tape around it from watching too many Red & Green Shows and is in love with Duct tape.But then we all have our own tastes and opinions and my taste and my opinon say I don't think it looks good or cool in the least.
I have seen this more and more lately.
Wrapping pipes in some kind of material
This was posted on this site today with a real nice old school Triton, but with the wrap also.

Is it just to act as a heat shield?
What ever happened to just staying away from the hot parts, like we did in the old days?
I mean Honda made the 50cc with a totally enclosed chain guard (marketed toward teens/adults)
(Note: the super cub is still in production and is being sold throughout the world today)

Then Honda also made the 50cc (marketed during about the same time frame) marketed toward Kids with the OPEN chain guard.
(I guess adults didn't know enough in the 60's & 70's to keep their fingers away from the pretty spinning parts)
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