My question is concerning the wet basement (cement block), which has a bowing wall, peeling paint, and water seepage, primarily where the floor meets the wall.

Pretty simple:No hate towards orange peels - they're useful. 

Ozone, paint, bleach, consume, masking the odor works until the humidity kicks in and the smell will come back.

Sellers that do not want people to walk through their house and are hesitant even when they have a mask. 

You can probably have the drywallers spray on a fine texture (not quite orange peel) and cover the imperfections. 

The only reason to texture walls in either orange peel or knockdown is when you already have texture on the walls and you need to match or you have a home with lots of imperfections in the drywall.

It amazes me when  I watch a renovation reality or other rehab show and see people without masks or gloves throwing caution to the wind.

., knock-down or orange peel, the repair will take a little longer to make it look good.

Laminate should have around the same installed cost as carpet, and can be used pretty effectively in wet areas like kitchens and baths, so you don't have to worry about replacing peeled/bubbled sheet vinyl or linoleum either.

First pressure wash with a detergent to get rid of all dirt, peeling/flaking, and chalkiness, then use a high quality paint.