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How much of the basement is below grade and at what level?

The primary benefit of the rigid insulation is the fact that it will (when done correctly) eliminate the thermal bridge of the wall and the big heat sink and condensation zone as a result.

Have people been insulating for years before rigid foam...yes.

If you sealed up the ribbon/band board areas really well and made sure no outside air was getting into the wall space combined with a very tight drywall approach, you should be fine. Be sure to use and unfaced batt insulation if you leave it as it.

The waterproofing membrane is very likely a Class I vapor retarder at this point.
 
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