The more I read the more I like:
Permethrin is the name of a chemical that is synthesized in a lab down to the molecular level to mirror the compounds extracted from Chrysanthemums. There has never been any toxicity to humans or dogs reported. The chemical is the exact same thing found in most over the counter dog treatments. The dog treatments are oil based to remain on the skin for a longer duration.
The aerosol is not toxic to humans, but there are dispersants in it which are not good for you. Don't be stupid and spray it into your face or breathe it in while treating your clothes or gear. The reason they tell you not to put it on your skin is because it is not EFFECTIVE on your skin for more than 30-45 minutes. Your skin metabolizes the chemical and it loses all effectiveness shortly after application.
When wet it bonds to the fibers of your clothing (and hair like it does on dogs) and forms a bond so tight that it will retain some level of effectiveness for a duration of 42 months or 6 washings. You should retreat your clothing after the sixth washing or once per year for your gear like sleeping bags.
Some materials that are waterproof will not properly absorb the chemical before it off gasses and it will not be effective (tents). Bottom line, it's NOT toxic to humans or dogs when wet or dry, and not toxic to cats or fish after dried and bound to clothing. Don't breathe it in when you're treating stuff...