i've used both cedar and birch bark as exterior wall coverings, in conjunction with split cedar shingles. i think both look really nice. i applied both over tar paper into osb with copper nails. it was a handy way to fill in over the door and windows, and the barks looked pretty as accents against the cedar shingles, IMHO.
Can you tell me more about your birch bark experience?
How thick was the birch bark-- Birch is one of those trees w/ layered bark. How wide of a piece can you put on before you have cupping issues, etc. Would a wide thin bark layer work glued down, or are narrow thick layers and nails a better way to go?