What should I do - Water Mitigation Issues

I live in an area hit by Sandy. My house was very lucky relative to many of my friends and neighbors.

In some sections of the house we took about 18-24 inches. In other sections, it was as low as 1.5 inches.

Obviously the stuff that got wet was removed - especially in the deep areas. However, some sections of the house weren't hit that bad and I'm really wondering what the right course of action is. My wife wants to remove 4' from every wall - redo everything. I told her that's crazy. In one section of the house the water was barely above the 1/4 Round...

There's no smell. No visual signs. Even in the areas in the back - the bad areas - there was only a few inches of water in the insulation. How much 'wicking' action does this stuff actually have?

But what about the areas that had 3-4 inches? So here are a few questions -

Would it be reasonable to pull 1 foot out? - Is that particularly hard to install just 1 foot?

What about bleach? I did all the mitigation stuff (Washed down everything with a water/bleach solution - then Air, Dehumidify, Then later Hot Air + Dehumidify) Would it be possible to drill small holes in the wall - Spaced every 4-6 inches, then shoot some bleach and/or anti-mold stuff back there?

Any advice would be appreciated.

Thanks