Replacing basement with Wooden Basement
Using concrete blocks is the way to go! Blocks can be laid as you knock down the old wall!
My bro-in-law had a PT foundation installed for his new house. A concrete footing is first required, then the framed wall is installed in sections.
Great care must be taken to ensure that no moisture can penetrate. Especially under the sill plate. Usually two or more layers of a water barrier are applied.
Waterproofing is a royal pain where you don't want pain, on a wood foundation. And if water does penetrate, you have a major prob. on hand.
A dry wood foundation will last as long as the upper framing.