Couple Questions: Is the basement conditioned space? Has the space been properly air sealed? Every insulation contractor will tell you that insulation without air sealing is a waste of money. That being said, I would do an insulation with sound proofing. Cellulose works much better to reduce sound than fiberglass. When I was watching TV or reading in my basement, I could hear just about everything. The cellulose only provides an R-value of 3.6 per inch. Depending on the height of your joists you could almost get the recommended R-25 for your climate zone. Polyiso foam comes in a spray or a board and will also help with sound and has R-values ranging from 5.6-8 per inch.
The type of insulation would depend upon the desired result. Loose batting insulation does not reduce the sound more than a few dB where as high density fiberglass does a better job of reducing sound over the entire range of human hearing ranging from 20 Hz to 20000 Hz. Human foot traffic is in the frequency band of 20 to 90 Hz which is where materials of high density, bass traps and active noise cancelation really work well.
The best way to insulate basement walls is with foam insulation that is sprayed directly on the concrete and between studs. High ceiling or low ceiling does not matter. Best insulation for basement is closed cell foam insulation. According to a report published by the U.S. Department of Energy, the annual savings attributable to R-20 basement insulation in a 1,500-square-foot home ranged from $280 per year in Washington, DC to $390 per year in Buffalo, New York.