You will be so happy with my solution (I predict). My husband is a contractor, so I have done a LOT of thinking about this.
It is good to know the price of Fiberglass (Pink) but it is really unacceptable. Especially if it is new. It is really a real boogie man. We wouldn't buy a new house, principally b/c of the Fiberglass outgassing.
The denim is BEAUTIFUL. I've seen a room done in it, and the walls weren't finished and it was fine. An insulation that doubles as a wall covering? Beautiful. I am not sure of the R-value . . . If you find out, post it!
I know that like any loft type material, including formaldehyde, animals LOVE it. You can sleep at night knowing they are not chewing on ground up glass.
I also personally feel that it is wrong to ask men to work around Fiberglass. It is the next Aesbestos, IMO.
But if I was trying to make a budget a little lower, I would do some of the insulation with Blow-in Cellulose. It is cheap and not extremely toxic like Fiberglass. My husband worked for a company that did "energy audits & updating" and this is what they used almost exclusively.
So maybe I would do denim bats in the attic and blown in cellulose around the house? The denim bats really are beautiful. Let us know what you do! I would love to hear.