Hear is my two cents worth of advice. First I don't know what a Shiver is so this isn't specific to the bike.
If I insulate the cat converter- will the heat only travel downstream
It will definitely contain the heat and it will get hot and have to go somewhere, I wouldn't do it.
I can remove the cat pipe and drill out the cat....will mess with the sensors
I believe it will mess with the sensor.
if I switch over to a non cat system- will the engine require a new map??
It will change things and a new map may be required.
Actually you seem to have anticipated all the problems. Maybe it would be possible to fashion a deflector out of stainless steel that could at least deflect some of the heat while moving. Other than that I think your best option is change out the exhaust and then re-map. Good luck and I am sure some others with more experience with this sort of thing will chime in with some solid advice.