Acoustic foams "absorb" noise, and are not noise barriers. Basically they cover hard surfaces that would reflect noise and increase volume by reverberation. Because these acoustic foams are designed to absorb noise, they are open cell and also absorb gasses found in the engine room. These gasses will shorten the life span of these foams significantly, that's why almost all engine room foam products have a "face." The face is typically a very thin urethane or polyester vapor barrier, thin to allow as much noise as possible through to be absorbed.
The photo looks like it may be a white urethane face. These tend to crack and shrink as the picture indicates. I am not aware of any spray or brush on product that will stabilize this face and not impact performance. Be advised that these foams can be sensitive to many solvents found in various coatings.
You could cover with perforated aluminum, but that would be an expensive way to put lipstick on a pig. Removal would probably increase noise level measurably, but not noticeably, if there is no vinyl or lead barrier in the foam composite.
Leaving it in place to deteriorate may lead to clogged air filters and bilge pumps, so removal or replacement are your 2 best options.
And Larry, I hear Steve @ Soundown has retired
My $0.02