"Heat rises"! Additional attic insulation wouldn't hurt. At the same time, the attic needs ventilation, which it probably doesn't have, however the "roofer boards" might be loose enough to allow for venting. I don't see any good reason to insulate between the basement and first floor. I used insulation board over my plank walls, however it doesn't help with the wiring at all. I ran the wiring up and down the cracks in the boards, as well as through some new framed partitions, which I added. If the foundation is laid up field stone, any portion above grade can be a thermal conductor. I sprayed my foundation with polyurethane. It shouldn't be too thick on the area below grade, as the old wall depended on some heat leaking out to prevent frost and the wall pushing. There are other brands in addition to the one below. Here is a link that might be useful: Spray Polyurethane Foam Insulation Kits

Are you saying it has paper facing or no paper? The paper facing would stop any airborne fiberglass, as long as it is not broken or disturbed. Normally, plain batt without paper wouldnt give off airborne fibers either, but if the kids knock it down or hit it then it would, that is always possible with throwing balls, etc.

Pretending the basement isn't part of the house is a mistake unless you are in a dry climate. Maine doesn't qualify. Instead of trying to isolate the abovegrade space from the basement, the better approach is to insulate the basement walls with materials not affected by moisture. See, for instance, this article by one of the leading building scientists in North America. Only Aroostook county is very cold, according to IECC climate map. The rest are merely cold.

Thanks for the reply. The basement is unfinished and not conditioned (no heat or AC ducts open to the basement). The only conditioning item I currently have is a dehumidifer that is set to 55% and drains into the sump pit. It does a decent job of regulating the humidity however it just doesn't move the air enough to feel fresh. Im thinking about getting an air purifier for the basement and running that regularly. Maybe see how that works before I go replacing insulation. My concern with the insulation is just that it may be a living-space for mold and mildew and I'm not sure if replacing or removing would help with that cause. Maybe the air purifier and improved dehumification would do accomplish 90% of what I'm after.