Hi Mark,
This reply doesn't answer your question directly because I've not considered insulating the doghouse before.
But, I agree that the engine noise is very loud when the tranny shifts down at high rpms. This happens to us when the engine is trying to maintain the speed I have set (usually 55mph or less while we're towing here in California) on steep climbs. I've found that if I just release the speed control and ease off on the gas pedal a little the tranny shifts back up and I can maintain 45mph at the lower rpms with less noise.
We're usually not in a rush to get somewhere, so that works for us.
Please let us know if you find a better solution for yourself.
Bruce