Turbines work off of a pressure drop situation as well as exhaust gas velocity. Since you are getting heat transfer to the surroundings (through the manifold) you are loosing some of that energy that is normally used to power the turbine.
The thermal insulation will help with the efficiency and spool of the turbo. By conserving the heat inside the manifold, your exhaust gas velocity will not decrease as much, since the change in temp will be smaller. The increased velocity will allow your turbo to spool quicker.
Also, by keeping the heat in the exhaust manifold higher there will theoritically be more pressure as well. that will make the pressure drop across the turbine higher which will again aid in spool up and performance.
I have heard people complaing about the fact that their EGT's go up due to this, but I think that is actually a good thing. What that is showing you is that heat is being lost through the manifold before it gets to the thermocouple. you are actually seeing a more accurate temperature. Now, if you were more concerned with heat absorbtion by the turbo, maybe wrapping isnt the way to go, but knowing that in our trucks melted pistons are probably a more common problem that turbo failure due to heat, I say wrap away!!!
If you already have a problem with excess drive pressure, the increased Vel might not help things.
hope that helps. .
--Jeff