Hello,
I would like to agree that what we see is a ceramic element in that hair dryer to keep the heating wires in position.
If anyone does not know how asbestos looks like: Here is an example pic:
http://physik.uibk.ac.at/museum/de/d...es/rs329g.html
The asbestos is used there as a heat insulation between glass and metal caps of the valve. I do have several similar valves in my collection. As long as you avoid to "disturb" (= touch or break) the material you do not need to be afraid. These valves have got a good home in a cabinet behind glass doors.
Yes, I would not like to use a hair dryer with asbestos inside, too! So it is good that you ask about.
Regards, Joe