There is nothing to wrong with AL conductors (but if they were in my house, i'd rewire everything). I bet the service feeders to your meter are AL. So long as they are installed correctly, with the correct devices and wire and torqued correctly with NoLox and the right wire nuts and checked periodically- there will most likely not be an issue.
Given that the there is a piece of romex hanging in the breeze off the bottom of your switch box, you might want to check your particular installation though. Maybe someone not familiar with the intricacies of AL wiring was fiddling around?
Ever looked into the foundation settling issue?
If we all threw our problems into a pile and saw everyone else's - we'd grab ours back.