Why is it I havent came across a hive with insulation all over the hive rather than just in the roof.-
Clearly you had not looked hard enough. Polystyrene hives have been around over thirty years.
Clearly you do not quite understand simple basic lphysics; ALL the heat in a hive is lost from the hive EVERY DAY, no matter what material it might be made of.
One of the main reasons why timber is still often used is structural stability. Others in the past may have been cost, availability of materials, non standardisation and environmental (recently).
My oh my, here you are on the internet and yet you have not explored the beekeeping information; not even on this site! 'Goggle' Beehaus (not actually that well insulated) or omlette(wrong sp but will do) hive. Goggle Sweinty, beehive suppliers or modern beekeeping hives, even paines or park(s) beekeeping All should be flagged up, and there in front of your eyes in your own home. There are a few others like appimaye, arbelo and trees.
Is that enough light? Remember thermal energy is moved into or from by only three basic routes, conduction, convection and radiation. One can minimise but never eradicate them. Of course, the bees are a bit clever, in that they actually only heat the cluster so the heat transferred to the hive is minimised. Sharper than the average first-world humans who heat the house, you might say.
Remember that simple basic Law of Energy Conservation: Energy cannot be created or destroyed. Have to also remember that mass is just an alternatve form of energy, first postulated and quantified by Einstein, only just over a century ago.
Perhaps you even need to get hold of a good (modern) book on beekeeping. Plastic hives should at least have a mention, if not some pictures.
RAB