steve pailet wrote: The real question other than to keep a frame from racking ... do we really need to apply a layer of sheathing..
Nope.
Sheathing is needed at the corners and that's it. Our (stupid) house in Wisconsin was built that way, with 1" extruded foam sloppily placed down and then vinyl siding over that. No one shared my California-raised concerns about this (earthquakes and
energy use codes...). If you build in diagonal bracing then you might not need OSB/plywood sheating at all - but of
course this may all depend on how much you care about inspectors and local building codes!
"High performance framing" uses 24" oc framing with very carefully considered window and door placement to minimize thermal bridging without double studs. The best combination of cost * effectiveness seems to be a 2x6 wall with 2" of external insulation (for my area ... your mileage will vary).
You're paying careful attention to vapor and air movement - that's good! I'll add that you can, with care, design a wall without the interior plastic barrier. Drywall done well with appropriate paint will give you a perm rating of 1.0 or better. Electrical runs and outlets seem to be the major hazard here ... as well as a happy homeowner who thinks a wall is just for making holes in.