Hi John, I suspect that since you use the term "bonnet" that you are located in the UK. As such, you may have greater access to 24v ignition components for the VW than we on the other side of the pond. I was told that locating a 24v replacement distributor for a VW type 1 engine was essentially impossible in North America. Coils are obviously readily available, as may be cap, rotor, points, and condenser.
I own a former military 24v snow trac as well, that I've since converted to 12v. Before the conversion, I wired in a drop-down resistor in the hot wire supplying the coil, so that it was seeing ~ 13 v at the business end. This way I was able to use all 12v ignition components, but keep the rest of the electrics at 24v. It worked fine. The resistor does get toasty so I mounted it to the fan shroud away from anything that could melt, etc.
As for the exhaust system you show, I would say it's not ideal for controlling heat in the engine compartment. For the car, VW engineers routed the exhaust out of the compartment, and sealed the compartment with tins and a rubber gasket. The stock snow trac configuration is a compromise on that design to begin with, and further modifications like routing the exhaust up through the engine compartment are a greater compromise yet. But how hot is too hot? Consider that your coil temp is largely a product of the heat it generates added to the ambient temp of the surrounding air in the engine compartment.
Cheers - Paul