I would say it would be glowing brightly under the wrap and what would increase safety would be a lagged exhaust pipe with another pipe over it to prevent chafing. That would certainly be a DIY effort but the principle is to conduct hot gases away without them setting things alight in the process.
I wonder if a home-made boiler would utilise those hot gases to make hot water, having a dual effect, beneficial hot water and gases cooled right down? It would recover some of the btu's otherwise lost too.
Chinese diesel heater now fitted and working.Initial problem was voltage drop due to too thin wiring with a long run,but when sorted the heater works a treat. It'not as noisy as I have been led to believe,havn't fitted a silencer and there is a high pitched whistle on start up which can only be heard by sticking your head outside.Inside there is a bit of a roar,but not very loud.After five minutes it settles to it's cruise setting and is inaudible apart from a slow thud thud from the fuel pump. It's run now some twelve hours and having a warm cabin when pottering about doing this and that is lovely. I havn't seen the exhaust glowing,but I have it on it's lowest heat setting which is more than enough for a Norman 20's dog kennel cabin.
Mine defo glowed viewed from outside when running flat out but it was heavily lagged for the short run to the outside air and it was the big Eber on my Ocean 30. My exhaust was 25mm copper tube to a homemade skin fitting - knowing how copper conducts heat might have something to do with it and on truck applications the exhaust is straight to outside air with convoluted stainless pipe.