I am using Quilter's Dream wool batting a quilt I am doing now and am not having any reactions to it. If fact, despite being told that I am allergic to wool, I have found that if the wool is processed so that it is relatively soft and smooth I have no issues.
I think that my allergy is more of a textural sensitivity than a true allergy. I know some people are allergic to lanolin, but it appears that most wool these days has been processed in such a manner that there is little lanolin left in the fibers.