Can thermal insulation be used to add insulation to a house?
Yes, that is where the product originated. It was designed for this purpose and adapted for other uses such as the Landy Insulation to which you refer.
The thin shiny aluminum foil attached to floor produces a reflective surface to the infrared light waves. It is extremely effective in reducing the radiant heat gain of a dwelling. But it only works on radiant heat not thermal heat.
So if you wrap a house in it you can block out much of the heat that penetrates your walls, roof and insulation. This allows the insulation to work mostly on the thermal transmission of heat thus making it more efficient.