Two not-so-easy ways to use cellulose products that don't settle not supposed to anyway.
1. dense-pack cellulose. Somebody named John Raabe mentioned it in the old forum. Wonder if he's still using it? http://www.countryplans.com/bbs/messages/3896.html
here's a link to a manufacturer/installer. Problem is that it doesn't seem to be a DYI system.http://www.regalind.com/regal_wall.htm
2. Cotton batts. A couple of companies make them, claim, of course all kinds of super properties. Run a search for manufacturer's info.http://www.toolbase.org/techinv/techDetails.aspx?technologyID=227
This last link also mentions the use of wool as insulation. Naturally pretty fireproof, if it's straight off the sheep apparently moth-proof as well.
But you're on your own there, no way for a company to start a sheep factory, although the last time I looked at wool, there was at least one company in the US or Canada selling unprocessed fleeces for insulation. That should make the farm more money than selling them to a broker to sell to a .................. to sell to you as a nylon-wool sweater and been around the world twice.
Cotton batts certainly can be DIY, seems like a couple of years ago they were being sold as direct replacement for fiberglass--not the bend to put in that's in that link.