First there is a great difference between shiplap and lap siding. Shiplap was a way to use green 1" boards for sheeting without having a gap show up when the boards dried. It also provided a little bit more rigidity in the horizontal position because of the overlap of each board. I think it was really great as a sub floor
Cedar lap siding is considered a premium siding (read $$$$) at least in the west. Prefered is clear wood. Naturally bug and rot resistant, holds pain well and pretty light and easy to work, It can last the life of the house and doesn't really need to be painted. Many a house on the Oregon coast were sided with cedar and left bare of paint to weather to a silvery gray color so often seen in "rustic" pictures of the area. Think I've seen the same thing for New England homes on the coast. Red and Port Orford cedar are the speicies of choice here. Don't know what you have available. Lap siding can also be applied with normal cut boards, i.e no taper. It looks more rustic.
Vertical Board and Bat siding is another scheme used with roughsawn lumber that can be put up with green boards and not have the shrinkage cracks show. They were covered by the bats (narrow boards). Many people like the look, it lasts a long time and is easy to repair if damage occurs to any of the boards or bats. A variation of this is Bat and Board where the narrow boards are put down first allowing a dead airspace next to the wall. I'd think it would be more difficut to apply and provide a nice home for bugs and such, but it's different looking which some people like.
