The main problem is they will shrink in heat, they offer no abbrasive protection to the internal parts, there are no stress relief offerings on any attached cables as well as other issues.
Saying that, I may also be trying out the same idea soon for a PCB I have that is only 18x22mm in size and very flat and it needs to slide through a 1" hole and it is also in an automotive environment… a very rough one.
Personally, I love the idea of using heat shrink for these kinds of applications. I use it where I can. I have at least three products that have used heat shrink for casing very effectively.
One thing you have to take into account is strain relief on any cables/wires coming off the board. The best solution I have found is incorporating extra wide holes on the ends of the board where I can slip a small ziptie through and cinch down any cables/wires to the board. This works very well. Tiny boards might be a little tougher.
When I get back home tonight, I’ll see if I can take a few pictures of examples and post them.
Whats the heat dissipation like on v regs as I recently used isulation putty then coated in liquid latex to give a rubber, custom shaped finish, however the putty gave no breathing for the vreg that was running 1A at 5V through it from a 12V supply and was getting far too hot so I had to put it in a normal case.
Yes this was just a quick temporary knock up to charge a USB battery not intended for any serious usage and I needed it on the day. I was just wondering what the heat dissipation was like regarding components in general that would generate heat.