I've been thinking about this one, and I think I like Jim D's idea. I've never tried, but I wonder if you could get cabinet grade ply (1/2 to 5/8"), hang it like sheetrock, and then mud and tape the joints? Then, paint or wallpaper (I think paper might hide joints better). My only concern with this idea would be the amount of weight it would add to the wall.
In my old house, a previous owner bought it as a foreclosure and flipped it (and didn't do some things right). We found a lot of rock was hung directly on the old 70's style thing paneling. Made for very strong sheetrock, but was a pain when running phone and cable drops.
In my old house, a previous owner bought it as a foreclosure and flipped it (and didn't do some things right). We found a lot of rock was hung directly on the old 70's style thing paneling. Made for very strong sheetrock, but was a pain when running phone and cable drops.

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