I recently dealt with this issue while renovating my daughters room. It had plaster, but it was plaster over gypsum, not plaster and lath.
I decided to remove walls so I could insulate and rewire.
Replaced with 5/8" drywall on ceilings and walls. Note: 5/8" on the walls is overkill--only required to have 1/2".
Got a quote on replacing the plaster, but most craftsman don't know how to do plaster, so they are hard to find, and more expensive than drywallers.
With open walls, you can measure the window stud openings and then order new construction windows that will fit exactly.
With an open ceiling you can easily rewire the overhead lights and add some recessed lights. Good time to add a wired smoke alarm too.
I also added a PEARL fire escape ladder under one of the windows (the bedroom is on the second floor).
Put 3.5" inches of spray foam in the walls and ceiling. It is now the most comfortable room in the house.
P.S. You may want to have the plaster tested to make sure there is no asbestos in it prior to demolition.