Well there are a few reasons:
1) It's not that great a *thermal* insulator. It's fine for electrical insulation.
2) Some of them are acid cure, which isn't real good for things like brass / aluminum or wires (they give off acetic acid as they cure)
3) Some of them are only rated to 500F on an intermittent basis (that's always hidden DEEP in the fine print)
4) Some hot ends (but no heated beds I know of) go above 260C
I'd say it's a great thing for seating / attaching a thermistor. It's "good enough" as a thermal conductor (much better than an air gap) and you can always pull it apart if you need to.