That's what I was wondering? I thought it was there to block heat?
Turbo whine. Made a huge difference on my E99 after I took it off. IDK if that was the actual reason for it or not. Also I thought that was the reason that they switched turbo design from the E99 to 99.5-03. The reason the E99s have the wicked wheel and later models do not, due to customer complaints. I have seen some E99 with and without the insulation on the IC pipes. Just what I heard and it seemed to make since.