I have seen it for the past 40 years, but it never caught on.
It is possible to be used structurally, but no company ever bothered to get it tested and approved. With additives it can have increased fire resistance just as cellulose insulation has and finishing/coating techniques must be modified. I guess it is just easier to use the paper, treat it and then produce insulation that works very well.
No one has found a way to produce and package a panel to be used in lieu of other wall materials.