In the winter I close the side vents (just bend a piece of foil over it loosely - not taped or anything) on my PVC cage and leave the back open. But my tank is not up against a wall or anything so there is plenty of airflow. Blanket should be fine as long as you don't have heat lamps (Fire hazard)
I also have heat lamps - so the top of the cage has two 8 inch holes in it. so vents aren't as important
It does nothing for temps, but does hold in humidity better.