I've never liked the "space blanket". I must be getting the ones that quality control misses, but I've ripped a quarter of the ones I've used. It is a good wind break and vapor barrier if you can wrap it around you, but on the ground, I've found them to not be entirely useless as insulation, but no better a garbage bag that has been slit. And a LOT noisier. Where I do like them is in shelter building, becuase they reflect light and a little bit of warmth from a fire if they are behind you. But I wouldn't try to use one as a signal device- from a mile away, looking down on them from a hill, they look too much like water to me.
I usually carry a couple of contractor bags becuase they are quiet and are much stronger. It isn't much of an insulator to be sure, no better than the mylar, when it is under you, but at least you have a moisture and bug barrier between you and the ground. But in terms of versatility, it beats the space blanket like a drum.
Personally, I like the heatsheet. It is warmer than either the thin mylar or the contractor bag, can be used as a signaling device, and holds up as well as the contractor bag. I carry heatsheet bivy in my ditch kit (along with a couple of contractor bags- redundancy, it's what makes me perky).
Now, if by "space blanket", you mean one of the tarps with mylar blasted onto one side, while the other side is green or blue, that is totally different kettle of fish. Those don't suck. I've also heard interesting things about using a tyvek bivy, but I haven't had a chance to try one yet.