What is the meaning of addressing someone as "Ibn Fulan" (son of so-and-so)? Is this form of address considered demeaning or exalting? Does that differ based on the speaker's situation and intention?

Calling someone "son of so-and-so" does not necessarily imply exaltation or degradation; rather, it is often for identification and may be intended for honor or to remove ambiguity. The meaning is determined by the context of the speech and the situation. The examples mentioned in the question do not carry any degradation, such as the Bedouin's saying to the Prophet (peace be upon him): "O son of Abd al-Muttalib," and Musawwir ibn Makhramah's saying to Ali ibn al-Husayn: "O son of Fatimah," and Mu'awiyah's saying to Ibn al-Zubayr: "O son of al-Zubayr."