If you don't have a place to re-use it somewhere else, I'd roll it all up and try to sell it. Somebody with a garage or shop might give you something for it. Don't call it old though, it's "vintage".
If you ever need to access the floor joists for improvements of wiring, plumbing, phone lines, tv lines, or whatever, you'll be glad that you didn't finish off the basement ceiling. Sheetrock or hardboard or whatever! Rest assured, that day will come.
Regarding the dust that is falling, do you have the hook up from your woodstove to your ductwork set up with an air filter?
If there was no wood stove at the time then the paper vapor barrier towards the heated/conditioned living space would have been correct.
I thought too that sounded right. Our basement is partially finished and the PO put up drop ceiling in that area. Since the basement is only 6' 10" tall, the places where ducts run perpendicular to the floor joist means 4-6 more inches of head room gone...so they put the drop ceiling right up against the duct work...as in right against it...I have no idea how they got it in there! Even the panels that are not against ducts are still really hard to get out, if I ever need to get the rest out I will have to cut/break 'em, then replace with the newer fiberglass (flexible) ones. I can't imagine how frustrating it would be if it was dry walled!
I would just get rid of it...Unless you just chucked it into the attic on top of the cellulose it would be kinda useless, the cellulose I thought needs to maintain it's fluffiness?
that was common for a while it created an envelope of conditioned space upstairs and unconditioned downstairs. If the basement is unconditioned it makes a huge difference in heating / cooling.
this is why my solution to basement ceilings is exterior soffit, no loss of headroom and easily accessible if need be.
