I understand your point of view but my old boss died of asbestosis. The tumors from his lung metastasized right through to his ribs. An extremely miserable way to die I don't wish on anyone.
Yes asbestos is friable and needs to be inhaled to start problems, but it's not a concern that should just be dismissed.
The people who come down with mesothelioma and asbestosis were exposed to asbestos for many years where they were constantly exposed to relatively high levels in the atmosphere. People who mined it, people involved in places processing it, or where they sprayed it as fireproofing (in shipbuilding or even some buildings), were exposed to airborn particulates that do the damage. One of the problems is that the workers were not wearing protective gear at all, there were no regulations around it.
I don't think anyone is dismissing asbestos as being a serious health threat, I certainly wasn't, and it should of been banned. On the other hand when asbestos was banned and everyone was talking about asbestos, back in the 80's, they were doing things like gutting buildings to remove it. What they figured out was if the asbetos was contained, like sealed in walls or in ceilings, they didn't have to. In some contexts they sprayed cellular foam over it to seal it in.
I lived in a house that had pipe wrap that was asbestos, I had to remove it, and did so safely, it was perfectly legal to throw it out as long as it was in a garbage bag. If the guy replacing the boiler came in and it was there, they would have to call in an abatement firm and it would have been like 2k, for like 4" diameter insulation about 10' or so, all exposed in a garage. I wore a dust mask, the stuff wasn't crumbling. Asbestos is a not a toxic chemical that seeps into groundwater, it is as airborn particulates that it is deadly.
Given the small amount of asbestos in wire insulation, it is highly unlikely you would have problems with it. You old boss probably worked around asbestos industrially where they were breathing in a lot of it for a number of years. Not trivializing what people went through with asbestos, just saying it isn't this deadly thing that one breath of it and you are going to get sick, that's all. In the case of the OP, I would be a lot more concerned that the insulation would crumble off and cause a short, that's all.