Dielectric grease is a silicone based compound, not a petroleum distillate. It is used in high temperature conditions but it will not withstand a black powder combustion environment (most dielectric greases break down at about 270 deg C, well below the black powder combustion temperature). Because it is a silicone compound it will not form the tar-like substance that often results from the incomplete combustion of petroleum distillate oils. However, it's use as a lubricant, and also as a fouling softener, is problematic due to it's tendency to break down in a bp combustion environment. I would also tend to doubt it's application as a chain fire preventative.
It can be a decent corrosion inhibitor, as it is not water soluble and will prevent water from reaching metal surfaces. However, it's not soluble in most common solvents like alcohol, ethanol or mineral oil, either. About the only solvent that can be used to clean it is methyl ethyl ketone (MEK), not a good thing to keep around.
Wouldn't it be rather expensive?