There is a difference between the concentration needed for bug proofing timber and that of clothing. The size and type of bugs makes a difference too.
No one is suggesting this stuff for skin treatment, and the instructions clearly state to allow clothing to dry thoroughly before wearing it. It smells awful while damp, but not after it has dried, nor if it is rewetted by the weather.
Cats can be like that. Even without licking the stuff. We can't use any flee treatment on our cat. We tried the stuff you put on the skin, one drop between the shoulders, carefully warmed to body temperature before applying. Cat shot off lap and cowered under an arm chair also foaming at the mouth, very stressed. Clearly though some cats aren't bothered otherwise the makers would hardly be able to sell the stuff. Similarly, a lot of people are allergic to dust, nuts, dairy, and seafood. Without more information it only means they are particularly sensitive.
As for it being linked to Gulf War illness, or being toxic to humans. Here are some sources that would seem to disagree with you. If you can find similar sources to back your point, please post 'cause I have been using the stuff for years and would hate it to be damaging me without my knowing
http://www.inchem.org/documents/hsg/hsg/hsg033.htm
http://www.pbs.org/wgbh/pages/frontline/shows/syndrome/analysis/pesticides.html
See the section on Pyrethroid Pesticides
www1.va.gov/gulfwar/docs/RiskFacto32.doc