I am currently using rock wool wrapped around my core also (made with firebrick splits) but with a 5 minute riser (ceramic fiber blanket wrapped inside a sheet metal outer casing).
The rock wool has been there approximately 1 season now and will be very curious to see how its held up over time. Its the heat riser though where temperatures get real hot and wonder if rock wool will last.
I think I might do a 6 minute riser (riser extends all the way to the floor) with rock wool and see how that fares. Will get back to you on that.
I don' have any experience burning black walnut so I'm not sure how it smells. If you can switch to another type just to experiment that would help eliminate that possibility (seeing as you were getting the same smell from your other wood stove). I know for me when I burn Douglas Fir bark, it can produce a chemically smell if not burned hot.
Insulating your exhaust pipe is only necessary when it exits the building so condensation doesn't form. Keeping a warm exhaust is important as it also contributes to good draft.
Although it has been stated that the riser pushes the gasses along, some feel very strongly that its the pull that makes draft occur. Either way, a warm chimney is your friend.
Peter has since switched over to the floor channel as a way to deliver secondary air to the port (also on his website) but the P channel you are currently using would not be a problem if you continued to use it.
Makes it much easier to replace when the time comes, is in the direct flame path which preheats the secondary air better and acts as an 'end iron' to helps keep wood from blocking the port.
You may be interested in a thermocouple to read the higher temps you seek. A fellow rocket scientist here on Permies has done some recent experimenting with one you may want to look into:
high-temperature-thermocouple-ideas and
Aslan-Core-Melts-Firing-picture
BTW, its Gerry.... Gary is my secret code name. Shhhh.