For breathability I want moisture to be able to escape through the walls, I dont want moisture barriers like plastic barriers choking breathability. I have inspiration from older houses before the invention of tyvek / vapor / moisture barriers. Older houses were generally thick wall studs (Balloon frame), diagonal boards (for strength) on the exterior for sheathing, tar paper was made in the 1800's so tar paper may have been used on the exterior (or nothing at all), then lath and plaster for interior walls (or more wooded boards). Wall cavities were generally filled with what ever was available, sawdust was common.
Some sort of 1" x 10" x 12' or similar boards would be acceptable for exterior sheathing. Ironically enough
1" thick boards are more expensive then
2" boards, there doesnt seem to be a lot of options for 1", most appearing to be "premium" for appearance. In the above example a 1 in. x 10 in. x 10 ft. (premium) is: $17.21. While a 2 in. x 10 in. x 10 ft. is: $12.72. ($1.5 / sq ft) .... now if you look at
plywood its 15/32 in. x 4 ft. x 8 ft @ $21.45 ($0.67 / sq ft) ... so you're looking at roughly a little over double in cost to sheath the house in dimensional lumber vs plywood. What do you use the sheath your house? You mention you use "heavily-overlapped, durable timber planks". Sheathing with boards would be preferable but keeping costs low is important to me so Ill side with plywood / tarpaper. I could eventually further sheath the exterior with greenwood board + batten after construction if lumber is available on the property or I will have to find something different.
Really my concern was coming down to breathability of plywood, but if im using tar paper on the outside (which isnt very breathable) so I suppose the plywood vs planks doesnt make a difference. I plan to use sawdust for all wall and floor cavities for insulation.