DIY: A/C Insulation

[Lafiro]

Now im trying to figure out if the cold line we are feeling on the top of the exhaust/left of the motor is actually going into the cabin, or coming out?

The pictures above show it coming out, meaning what is the point to keep something cool thats not going to the cabin to make us cool!?

Someone has to explain this better, or maybe there is another place to insulate this?

Also has anyone looked under the steering wheel, right side of the floor, and also seen how close the two pipes come to each other? Seems like that needs insulation as well!