For future reference, when I tried this I didn't know, and thus failed to take into account, that PTFE apparently has no shape memory. Toasting it does make it wonderfully flexible, though.
Going to see about ordering a PEEK insulator or two, maybe even a hybrid, and the PTFE that was used for this exercise will hopefully become washers.
As for the question I had about fumes: the maximum temperature of this toaster oven is 450F. I don't know if that's true of all toaster ovens, but in any case it seems to be a safe temperature for working with PTFE, as my reading indicates that it doesn't start giving off fumes until 500F (260C), and it shouldn't cause Teflon flu until it hits 662F (350C). And I'm still not sick or dead yet, so there's that too.
Overall, though, I don't know how useful doing this would be - if at all.