Could you get lots of bristol board/ big rolls of newsprint etc. and cover up the insulation so people cant see it, art work extra. (out of sight out of mind, kind of thing)
For me as a parent the insulation even under plastic, would be a turn off. (plastic can rip).
can you put up gates or something around the laundry area. I use big plastic containers to block on area of my daycare. It also helps to store extra toys.
The poles, well they are just part of the basement. How about some colorful paint, so they don't look so "cold".
The floor, the rugs are good. what about the square foam mats as well, for any area the rugs don't cover, or even under the rugs to add some padding when the kids fall down. As a parent knowing that there are mats under the rugs, would be a plus.

































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