When I suggested an HRC fuse I was thinking of two things:
1) The input protection circuits of all those Fluke meters that we've seen on teardowns (thanks Dave). It's wise to copy these techniques as the boys and girls at Fluke seem to know what they're doing.
2) The way that an HRC fuse ruptures when subjected to an overload, it does not arc internally and the break in current is clean and quick.
After posting I had a thought, would a capacitive divider be safer than one based on resistors?
1)The flukes have HRC fuses on the current shunts for when you brain fart, and put the probes across the bus in home load center with it in current mode it doesnt explode in your hands. The voltage inputs have MOV's and PTCs for input protection. Check out a teardown of the meters without current measuring (I think one of the fluke datalogging wireless ones was like that?)
2) It does arc internally, its just obscured and then suppressed by the fiber jacket and sand filling. Any standard/fast blow fuse should be clean and quick. Nothing else in your house will have HRC fuses, as the breaker/load center provides the 15/30/whatever-is-relevant-in-your-area KA load breaking capacity.
If this whole widget is floating at mains, then dont bother with isolation, as it is obviously irrelevant. If it isnt then obviously isolation would be a good thing. depending on cost/space, the analog optocoupler may work well, or an isolation amplifier, or put an ADC on the hot side and run the digital signals back over a digital isolator. Or if this is a one off, get a small transformer and calibrate that and use it as a potential transformer.
http://www.digikey.com/product-detail/en/3FD-212/MT2101-ND/98294at $5.25 each, its about the same price as an analog opto, iso amp, or dac/digital isolator. If your item is mains powered and you have an onboard transformer, monitor that instead, but mind your grounds as there is sure to be a diode in the path somewhere.