The classic mylar survival blanket CAN be used as a VBL, but its best use is as an emergency item, used to create a reflector of heat.
It makes a truely excellent waterproof/windproof/thermally reflective layer when used for making a survival shelter for instance. It can also be wrapped around you, as you sit “indian style” with a small tea light candle carefully positioned between your legs to trap and reflect heat from the flame.
As a tool for increasing a bags temperature when doing conventional backpacking, it is quite lacking. “Space blankets” were intended for use in space, where only radiative heat flow is a factor. On earth, other heat loss factors apply… like convection, conduction, and evaporation. Your sleeping bag is covering the “radiant” heat loss far more effecently than the reflective mylar. The thin material of a space blanket will have no effect on conductive heat loss, and so your left with convective and evaporative heat loss. wrapping yourself inside a space blanket inside your sleeping bag will stem the loss of heat by creating still, dead, air close to the body (convective), and by trapping warm moist air lost through evaporative loss. However, both the convective and evaporative loss can be delt with by VB clothing, or even a simple trash bag, so really… the space blanket is not helping you out all that much.
In my opinion, a survival blanket really only earns its keep when used for making shelters. In that role, it is excellent (when used properly), otherwise its actually sort of gimmicky.