I generally think the idea of building within an existing structure is great; you like the found property and you have a trustworthy architect with relevant references, so you are already riding high in this part of the forum, because the architect will also enjoy creating another reference project for herself and overcoming the existing challenges.
Such a project is therefore not comparable at all to the usual constructions of a single-family house on open land through a general contractor or a prefabricated house company.
P.S: I also really like split-level houses. That would probably make more sense with my elongated floor plan, then the stairwell would have to be in the middle.
What are the advantages and disadvantages?
Disadvantages can always be financial in nature or of a practical kind. Often, beautiful things are simply not practical but beautiful, and with such a property there will (hopefully) be a lot of beautiful and individual parts, which ultimately will not always be as practical as possible in a usual single-family house. For that, it can (and should) carry your very personal signature, and that applies equally to split-levels as to visible beams, etc. Such a house should especially receive elaborate planning/design on the inside; then it will be a gem.
You miss further participation here, but that is currently hardly possible since one is still in a vacuum until the first draft or at least a hand sketch within the framework of the possible building method is available.
You want to refine such a piece, then you will also be able to live well with and arrange yourselves with the fact that not all desired "standards" can be implemented. I would start by discussing basic ideas with the architect and have their feasibility checked by the authorities; then maybe start a new discussion or it will become more active on its own when it becomes concrete.
In this respect, I also believe that topics like car parking, terrace(s), storage rooms, access paths, etc. must only be implemented as a whole and maybe also in more unusual ways in order to create a beautiful overall structure.
I am already very curious and would be glad if someone brings their project here again with an open mind and as a return also receives the often important experiences of the participants.
It is not because of the name of your thread.