Couple of comments, unless of course you have already done this:
1) Whatever you use, make sure it's painted white, so you have maximum light reflection; have never been in a shop with dark walls that didn't seem needlessly dim, especially near the walls. Our old eyes also function better in high contrast situations.
2) Drywall is a fire barrier, even if it's not fire rated. Anything wooden is going to be kindling.
3) For mounting cabinets etc, framing up the wall with appropriate 2x4's is easy peasy once you have designed the setup.
4) Totally true about the insulation and vapor barrier being done before the final wall cover material needs to be worried about.
5) Drywall anchors (look like a baby corkscrew) that shoot in with a #2 Phillips bit and look like a big e z threaded insert work awesome and are a snap to put up, no drilling needed.
6) Drywall will quiet the room and transfer less noise to the outside / into the house.
Post up some pics of your kingdom mon ami.
Happy Canada Day to you tomorrow.