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As much flex as you're getting in the side while sanding, I'm still thinking the wood glue won't be stiff enough, nor crack resistant. Before slathering glue all over your thousands of hours of hard work it would be a good idea to make a test piece of a thin part of the body like an upper rear corner.
Spending the time to fully finish out a duplicate section to its end state then testing it to destruction will give you the best idea of how your proposed finishing method will or will not work.
I'd really hate to see you put so much work into this project only to turn it into a garage queen or a wreck with an "alternative" finishing method instead of one that's been well tested and proven to work on many types of vehicles, including very high stress applications on homebuilt aircraft.
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