The biggest challenge using a single walled shelter with my daughter was her tendency to run her sleeping bag covered legs against the roof of the shelter. Why did she do this? No clue. Anytime there was condensation the foot of her bag would end up wet. After a couple of years she grew out of that behavior and we felt free to switch her to a down bag.
As to bug protection... our solution was to camp places without bugs :-) or to use shelters that have an options of bug netting around the perimeter. For example, oware, mld, kifaru, sell tarps with bug perimeters, or you could add your own to the golite line.