When to Repair Plaster or when to Sheetrock

In the midst of planning a brownstone restoration. I recently had a contractor tell me I should remove all the plaster walls and ceilings etc and put in sheetrock. There is certainly quite a bit of cracking etc. He insists the “plaster is dead” and demonstrated at several spots by crumbling the plaster in his hands. Can’t I just re-plaster. He says we can save the moldings and emblems etc (beautiful) – but he would sheetrock around it. Does this make sense? Which way to go? Any thoughts or advice would be greatly appreciated?

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