I seem to recall that the US Navy lost a couple of F16's and suspected Kapton insulated wiring. Later investigation by the Navy highlighted the nasty little habits (arc tracking, cracking, hydrolitic etc) of this stuff. Subsequently the F16's were rewired or scrapped. Off course there is Swissair Flt 111. I don't recall seeing final conclusions on this crash, but there was certainly strong evidence that a wiring insulation failure above the cockpit was to blame.
The real problem is that a large portion of the worlds passenger jets still use this stuff. Boeing stopped using it in '92, but I understand that Airbus still use it. There is no way that it will ever be replaced in existing aircraft due to the cost. It would cost less to replace the planes than to rewire them, and who would pay? It would bankrupt ALL major airlines, and manufaturers, and the impact on the world economy would be disasterous.
Cheers,
Feeton
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Once I was VERY good, now I'm very good, once!