lcwit,
When I said significant heat, I'm not talking about 140 deg F.
It's likely that what the OP has is some form of ployester resin, along the lines of fiberglass resin. Mixed correctly, those can top 170 F. Too much resin and they can top out over noticably over 200 F. I know this because one of the things I've had to mout are automotive thermostats. They begin to open at 165 F. If we don't drill and drain the power pill, the mount is ruined when the thermostat opens and cracks the plastic in half. Even 185 deg thermostats will open often enough that we drill out the powerpill on those too.
Will 200 F ignite a primer? I don't know. I'm also not going to suggest someone find out by wrapping a live round in something that will harden, contain some pressure and then, if the round goes off, turn into shrapnel.
As to what happens to it if some kid gets it down the road: Does it really effect the outcome if they cannot tie it back to the person who made it? The fact is, in a garage sale - or sitting in a pile of old stuff that was thrown out or given to goodwill - a parent is likely to assume it is inert and let a child play with it where they wouldn't if it was a loose (apparently live) round. If a child does try to burn, or otherwise destroy it, and it goes off, the point is not if they know who made it to place blame - it's that someone may get hurt because of the innappropriate use of live ammo.