Josh,
Yea certainly the way the j-box is done is not the correct way to do it.
If you are going to enclose the attic space then yes insulate the ceiling and not the floor. Depending on what is under the floor I still insulate the floor for sound deadening downstairs, and yes it does help the downstairs maintain temperature. I have done this in my own home and we hardly ever used the A/C or heat in the downstairs because it was insulated so well. Pay me now or pay me later so to speak.
Ron,
Romex..Not Rolex.
I wish I had a Rolex (watch)
Yea, the kitchen looks great!