> the "wonder" of drywall is entangled with the fossil fuel economy in a way that makes earth-based construction methods look increasingly attractive as that supply chain unwinds.
I keep thinking of that scene in Brazil where the hero, Harry Tuttle, opens a modular wall panel in Sam's apartment.
We standardized on 16 inch stud spacing here in the US a long time ago when we likely still used cement with a plaster skim coat on wood lath. Cutting up a board of nearly the same stuff feels primitive. You have to break open the wall to fix things.
To me the next logical step is a standard for modular walls that are laid out on a grid structure. I get that no one wants exposed screw holes but I can think of ways to hide them or make them part of a decorative pattern to blend them in. The coverings would be made to be cut to size as well. Wall panels would have to be environmentally friendly so wood is a first choice in natural and/or composite forms.
If you think this will look boxy then look up the passive house and notes on home building. Homes with a winding structure are difficult to seal reliably and roof so a boxy home is actually more economically friendly in terms of insulation to reduce HVAC energy consumption.
We have exactly what you want - it's called shiplap or car siding.
It's wood that is nailed up in such a way that you can pretty easily remove and repair something and replace it.
However, inside wall things get done so rarely that the cost savings by using drywall more than covers paying someone to patch the drywall after a repair.
A middle ground is to run all utilities at the bottom or top of the wall, and use large baseboards/crown molding to cover it up.
> no one wants exposed screw holes
Wouldn't bother me. But I'm an engineer. But I think the holes can be plugged with removable plugs.
> You have to break open the wall to fix things
The best is to build in such a way as to not have to fix them in the first place. European standards mandate passing all wiring through corrugated tubes. Builders add spare empty ones for future expansion, which makes it unnecessary to open the walls in most cases.