I’m in the middle of renovating and Im come the fork in the road for my family room:

• Remove plaster and lathing from side walls and ceiling, add/fix electrical outlets, add better insulation to outer walls, put up new drywall directly to studs, but create a huge mess/dust bomb (note - we already removed plaster walls and lathing in kitchen to open up floor plan so place is already covered with dust.
• Keep plaster, dry wall over, minimize further cleanup, reduce trash needed to transfer, less time to remodel.

Ive attached a photo of the plaster as there are some damaged portions in the plaster.

Let me know your thoughts!

and, Thank you!