I've wondered about this also. Radiant heat is reflected by the shiny surface of aluminum. As I understand it, this is the heat that travels through the air. Conductive heating occurs when heat travels through a solid or liquid. So, to keep heat from getting from the exhaust or engine to the floorboards or firewall, aluminized material, reflective material facing towards the heat source helps prevent that transfer. Insulating material, like asbestos or closed cell foam, traps air within its structure, and air is a poor conductor of heat, so that's what keeps the heat from migrating from one side of the insulation to the other. The insulating value of materials is expressed in mathematical terms, like R-value. So where is all this going? I think that the shiny aluminum on Dynamat does little inside the cockpit. The butyl rubber is great, however, at sound attenuation. What I don't know is what is the insulating value of Dynamat.
Several folks have placed aluminum faced silica, self adhesive material on the underside of the tranny tunnel, with the aluminum facing the transmission. This material has great reflective value, but little insulating value. In my restoration, I've placed this material beneath the insulating panels on the firewall and under the driver's floorboard. This should help with radiant heat that makes it through the panels.
Inside the cockpit, a buty rubber material makes great sense for sound deadening, but for insualtion, a closed cell foam material seems more logical.
I'm no expert on any of this stuff, so when you guys poke holes in my logic, please be kind. And I'll be quite happy to learn from others' greater knowledge and experience.