Hi Bill, et el
Apple to you Bill...I do agree...with caveats...
Let me stress in an emphasized way that my...suggestion...about wood cladding inside and out, is only based on...$$$...of the material on a national average for both material, installation and finishing costs compared to "natural plaster finishes."
THIS IS NOT ALWAYS THE CASE!
The national average for "mud slingers" as a few of my plaster Artisan friends like to call themselves (whether lime, clay, gypsum or a blend there of) is between $3 and $5/ft2 for installation labor plus material cost which can vary sharply based on locations and area bearing market characteristics (e.g. Greenwich, Connecticut, vs. Areas of Texas and the South West where cost can drop significantly for both material and labor...)
Now when all of this meets the cost for just wood or textile cladding, then I agree 110% with Bill!! go with a lime, clay, gypsum plaster. I would further emphasize that these natural earth based finishes are not only aesthetically pleasing, but:
have an effect on the air quality of a structure for the positive...
damped temperature swings...
equalize humidity...
are easier to repair and change finishes on than is wood...
As I had said above (or I should have

) that when wood is used, it can later be plastered over should the cost become affordable or if the occupants tackle it themselves as a VERY DOABLE DIY project. I have actually seen very nice ornamental and well done simple "lath work" be installed on a wall painted with a lime/milk paint wash and live with for years very nicely facilitating hanging pictures and other art while give a beautiful effect to the walls...THEN...when the owners could afford the time/$$ they plaster the lath with there own blends of clay and tabby lime the learned to make. In some areas the lath was left and the wall below (wainscot) was plastered and textured. The finished work was priceless and significantly raised the resale value of this "starter home" for a young family...
Another recommendation I neglected was a wainscot of wood and wall of plaster above (or the reverse) is another way to have both elements and their benefits...
Now for some challenges with what many call...plasterboard, drywall or sheetrock...
This is potentially one of the most "polluted" materials in a home today other than the many VOC brought in by carpet padding, paints, cleaners, furniture stuffing, pest control companies, and related "nasties."
"Sheet good" products...can be...very "green", but even this can often be a misleading "greenwash" by a manufacture, as "green" has come to have many meanings. Green can (and has) come to mean 100% recycled material. Well...that's good...

but is it? Not all "recycle sources" are "nontoxic." I have (and do) read about everything I can get my eye's to on these subjects. Sheet Good products are a big focus.
So...what are some of these downsides?
Well, biocides (which are toxic) for one can be a concern depending on the type, if they are present in the material matrix. Then we have all the polymers, binders and chemicals like vinyl acetate monomer, acetaldehyde and formaldehyde that is in so many of these products, and you (the consumer) has to "try" and dig through the cryptic and surreptitiously worded MSDS to try and figure out "what's what."
Now within this it has been stated that the, "National Gypsum Sheetrock Gypsum Panel" according to the manufacturer, are zero-VOC-emitting, and not manufactured with added formaldehydes..." Much of this is also made with recycled gypsum and recycled paper, yet one must wade through "which is which," or insist there GC/Project manager does this vetting before selecting the material. I should also probably state now that toxic forms of drywall aren't' just from China.
"...Sarasota Herald-Tribune describes the recent unfortunate experiences of homeowners whose homes have been contaminated with sulfur gases from U.S.-made drywall, manufactured with toxic synthetic gypsum. All standard drywall is made with at least some synthetic gypsum now, so before you purchase any standard drywall, check that the manufacturer has screened for the sulfur gases that result from poorly produced synthetic gypsum..."
Synthetic gypsum...even with the toxic sulfurs was considered...
GREEN by manufactures and
LEED authorities just because it was "recycled!!"
Drywall is “mold food.” Standard drywall acts like a sponge, taking up water and moisture vapor readily, and holds onto the moisture which is both a positive, but can also be a BIG negative. This happens more so when faced with paper and why I (et el) recommend it always be removed if trying to refurbish or used these "off the shelf" products. The must be allowed to "breath" and rapidly dry out if overly wetted, or within 48 hours of becoming wet in the event of a leak or flood, it becomes a perfect meal for mold. In high humidity areas, this can take place quickly over a short period of time. When moisture vapor isn't allowed to dry fast enough (like in most "airtight" structures of today) to the interior and/or exterior of the building, there is an interstitial build up within the walls and on the surfaces within the matrix of their construction. Additionally, with the now-routine recycling of drywall to make new drywall, there’s a possibility that the recycled materials contain dormant mold, which activates when moisture vapor rises too high and doesn't dry effectively enough due to...again...lack of permeability. It would be great if these sheet goods would have to meet a standard like nontoxicity levels according to German Bau-Biologie standards, which are stricter for health than U.S. green seals. They need to become either much more mold resistant, with better moisture transmission, so they dry to both toward the inside and outside of the architecture.
I prefer artisan and locally made/worked natural materials as much as possible for my builds, however this isn't always possible. So what do I recommend at this time other that what I have discussed thus far? Well if going with a bought "sheet good," these are on the top of my list if I can get my "mits on it," at a reasonable building/project cost.
DragonBoard
"...DragonBoard is a more than a wallboard. It is a construction panel, it can be replace plywood in exterior sheathing, subfloors, and related applications. It is manufactured with recycled wood waste dust and minerals, specifically
magnesium oxide. Ancient Romans employed magnesium oxide to create superior natural cement.
Jet Board
This is the "American" version of dragonboard.
Both of these allegedly meet the Bau-Biologie criteria for health. Both can be more prone to cracking so closer attention to detail must be used in joint tapping, and other factors of installation. Because Dragonboard is shipped all the way from China, I have reservation for its use, but will live with it compared to more toxic alternatives. They don't seem to work well with Murco-100, as it requires a higher lime content, and especially if applied under natural plasters. These two magnesium oxide based boards are compatible with nontoxic
]Keim Dolomitspachtel joint compound.
Others of note that may be considered:
Magnum Board
HEMP TECHNOLOGIES COLLECTIVE
Hempcrete
hempline
Wheatboard
Hemp binder
Greenboard
natural mortars
ReWall, Essentialboard
Rewall Solutions