I had a house with mostly Armored Cable and came to appreciate it. Especially after I opened up a floor and found an exposed conductor on some Non-Metallic that had been chewed by a squirrel.
There are still existing functional knob and tube wiring systems that are 100 years old
I've gradually added GFCI outlets to each circuit. They're not grounded, unfortunately, but they do trip if something were to go wrong. And it allows us to plug in 3-prong plugs without using those horrible 2-to-3 adapters.
We had to change home insurance companies because Amica blacklisted us the instant they heard there was knob-and-tube wiring. A few other companies have the same approach. But it's not like homes are spontaneously combusting everywhere because of it.
Guess where I am ;-)
(Not in Chicago/Cook, though.)