Sounds like a neat project Joel, I just love wattle and daub, especially the Japanese wall system. In Japanese timberframing, components are almost never finished, the surface is hand planed and then left to age gracefully. My species choice is Port Orford cedar. It is much more stable(wont twist,bow, or tweak) than Doug Fir, especially the second growth stuff your likely to encounter, its strenghth charachteristics rival D.F.s, and its almost as decay and insect resistant as redwood. I
feel that with infill wall diaphrams its worth using dry , stable material, otherwise the posts and beams will shrink away from the plastered walls, and if they tweak at all, they will crack the wall. I guess it all depends on what kind of finish your after? Good luck