Most people use the mold resistant sheetrock and tape and mud. Very few plasters around anymore, and when you can locate one, they are very expensive.

Depends where you live as far as costs. I can get a blueboard and veneer plaster finish for about the same as a cheapo tape and mud job. Plaster walls will hold up far better than paper and mud walls.

Is there increased chance of mold and or mildew if I use plaster instead of just mud and tape?

The key to success here is keeping the humidity uniformly low, not the materials or treatments of the walls. The subject of basement vapor barriers is arcane and contentious, I don't think there is a well-agreed answer that can be applied uniformly. Our house has closed cell foam applied to the outside of the concrete foundation and rigid foam and poly sheet under the floor, so far so good for humidity. That's hard to retrofit, though.

Providing mechanical dehumidification and circulation of the air is probably your best approach, a single dehumidifier standing in one corner may or may not keep the whole space at a uniform humidity. Using a dehumidifier coupled with an energy recovery ventilator and some ductwork to distribute fresh, dry air throughout the space might do the trick.

I also live someplace where it's easier to get plaster than drywall, plaster is a vastly superior surface, installation is also faster and easier-- no sanding with the associated dust. There are mildew inhibitors you add to exterior paint that might also be addable to plaster, I don't know whether they are approved for indoor use.