Dilemna

So I have a dilemna regarding our new house. We put some drywall in so that I could paint the walls; in our previous home all the walls were natural pine and I craved some color. Already the drywall is cracking due to the ground shifting due to frost. That is a major problem in some areas of this resort and our land seems to be one of those areas. So I decided to put up more pine but was thinking of staining it or painting it in the bedrooms on the second floor. I had Hubby put the pine from floor to ceiling so it looks more like beadboard. Then I started to read online about this project and they talk about having to seal the wood first or the knots will bleed. So now it sounds like way more effort; much easier just to varathane all the boards and leave them natural. Color might have to be added with furnishings, rugs, and accessories. I did spray paint some pine white for the ceilings on the main floor and it seems to be okay so far and I did not seal any of it. What would you do? Need advice. Lots of folks like the wood look for a cottage and since this place is at the lake perhaps drywall is best left for the city!!!