Hard to beat properly engineered heat shields. They create a thermal and radiant barrier while allowing cooling to the manifolds. Stainless is a great metal but again anything built from it needs to be engineered as it expands and contracts as it heat cycles and this can/will crack parts and welds. Stainless also conducts heat slower than mild steel so it insulates somewhat like Jet Hot coating on mild steel. Mild steel is actually a very good material if it is ceramic coated.
Wrapping is ok in racing applications but can overheat parts and accelerated corrosion. It also gets dirty.
Most of the header repairs Ive ever done were on stainless wrapped headers in turbo apps. I havent seen problems with wrapping or coating in non turbo apps either way.