This is a fine line - the whole insulation thing. You need enough to prevent your fridge from overworking, but not so much that your beer never gets the some coolness to keep your yeasty boys in check. This solution seems terribly inefficient to me. Just bend over (your pants are already dropped, I assume), and let your power company ram you continuously. They only "use lube" from 9PM to 9AM, typically....
I'm sure it will work for you in the short term, but I would look for a more efficient means to your temp control - one for serving, one for lagering, and one for fermenting. You can cut a corner and combine the serving/lagering (with some slight compromises). Or, just build yourself one of these....
http://www.wortomatic.com/articles/The- ... n-ChillersMylo