I have a thing about insulation and always use fiberglass batts or rolls. Make sure and leave a space between the concrete wall and the interior wall for circulation. Do the whole wall, doing only half will be as bad as nothing at all.
As for the heat you should check for the amount of BTUs that both the baseboard and the stove put out. You will need X amount of BTUs per cubic feet in your basement. These figures will tell you what to do.