It is workable and has been done many times. It is also redundant structurally and not as energy efficient since wood is not that great an insulator. It is also mucn more difficult to limit infiltration and therefore you get hit again on energy efficiency. Would you use plywood as an alternative to the OSB? What about on the floor? Some have found OSB stands up better to the weather while you raise your frame and get a roof on it. I wonder if your deck would be subjugated to the weather even longer if you were to add a stick frame around your timber frame? Some people don't like OSB for fear of the release of toxins into the home, but a curtainwall panel would release these (if any) to the outside of the home. Just playing devil's advocate, but I am a proponent of energy efficiency... in a perfect world we would have a green, affordable panel available to us!

Murus (are they still around?) made a green panel, I think it was basically modular stick walls with cellulose blown in. I can also attest to the potential disaster of infill systems. With enough maintenance and foaming in of joints between sticks and posts it can work, but is it worth it? Will it be worth it when oil is $3/gal or $4?? I think the industry has settled on panels as the lesser of evils and we're all hoping for greener enclosures.