Difficult one to answer really JB.
There are those who try to use wholly traditional materials and there are some who use wholly modern modern materials. I think most of us use a bit of both in one way shape or form.
I teach bushcraft and survival and can see benefits to both. I also use both natural and modern materials almost interchangeably.
Sleeping systems being just one thing which can be greatly controversial. Most modern sleeping systems are filled with some form of man made fibre and as such work reasonably well even when wet, but warmth to weight and size when packed tend to run in favour of natural materials like down. Having said that though invariably the down is encased in a poly fibre in most cases like Pertex and the same for down jackets. In this case there is almost a perfect fusion / symbiosis of new and old.
Then if we look at tapaulin's most of us wouldn't dream of carrying a tarp made from natural fibre for long distances packed in the top of our bergans, the weight especially after one wetting out would be somewhat excessive and then we have the size to consider.
I was out in the rain and the wind a couple of days ago, my base layer was a merino wool top, then a cotton t-shirt, then a polartec fleece and finally an aqau dry jacket. Layers being used to good effect. I also had a Ventile smock with me which I tend to use around the fire. Later in the year I will use Ventile a lot more having single layer and double layer jackets, but it's still a trade off on water resistance, smell, noise amongst other factors.
Many of us wear leather boots that have a lining of sympatex or even gore-tex. Modern and old can work together very well, but there is normally some form of compromise like smell (you only need to look at the original Karrimor KSb's to prove that).
Old and new doesn't just apply to clothing and footwear it can also apply to our shelters, sleeping systems, rucksacks / bergans, water bottles and cutlery we use. I doubt very much if there are too many people in the western world out there wearing all natural fibres, sleeping in all natural fibres, walking in all natural materials and using cutting tools that have or involve no modern materials or methods of manufacture.
Whether people like it or not they'll probably find that somewhere in their kit there is a fusion of old and new and they'll possibly find that it's one of the better pieces of kit that they own.
Does wool insulate when it's wet, In my experience yes it does, I think they tried to explain it
here,
here and
here.