The reason you take the heatsinks off is because with the pressure they're putting on the chips and the heat from the oven, it'll flatten the solder balls and completely trash it.
Just making sure this is how it wrapped, with the under side covered too?
Honestly I wouldn't bother with tin-foil, it has a minimal effect on limiting heat exposure to the capacitors and you risk causing an electro-static short to the components when wrapping it.
Just cover up plastic bits liable to melt, like the blue buttons at the front. The rest is pretty much safe.
I've carried out the above process on a fair few 360s that have been faulty (combined with oven/heatgun trick) as well as perfectly working consoles. Not had any problems yet but only time will tell.