Insulating the baffle allows it to operate at a higher temperature, but not always better for overall operation of stove.
Raising the combustion chamber temperature is the primary concern by adding firebrick and baffle. The flue gas temperature is also critical since that is what makes the stove go. You can only retain so much heat in the firebox before decreasing the flue gas temperature below the critical limit. The basic operating principal is the heated gasses rising up the chimney create the low pressure area needed in the stove to allow the higher atmospheric air pressure to PUSH oxygen into the stove intake. Without secondary air above the fire, the intake air must mix with the flammable gasses expelled from the fuel. The higher the velocity, and changing direction, the better the mix. Insulating the baffle can retain too much heat in the firebox, slowing the draft, reducing the intake air. Many factors are involved in each vent system, firebox design, baffle angle and “smoke space” the exhaust travels through. The smaller the firebox, the more critical this becomes since you don’t have as much waste heat to allow to escape up the chimney.
Properly sizing the chimney, Insulating the chimney flue, using double wall connector pipe, and baffle plate adjustment will do more than insulating the baffle plate.
If adding secondary burn tubes, the correct heat lost up chimney becomes more critical since the temperature differential (difference between inside and outside of chimney flue)= pressure differential (of atmosphere and inside connector pipe and firebox) which is what allows atmospheric air pressure to push the oxygen into the secondary burner intake. The amount of air, its temperature and velocity are critical.
The chimney is the engine that runs the stove. Heat is the fuel that makes the chimney work. You can see how retaining too much heat in the stove slows the burn by decreasing the strength of chimney (draft). Chimney height is another factor that determines how much heat must be left up chimney. The object is to maintain 250* f. all the way to the top of chimney flue. Adjust baffle exhaust area and angle to maintain this critical flue temperature at top whenever smoke is present to avoid creosote formation.