If you go that route, you can use prefinished wood flooring, which makes it easy. We had a carpenter do the bottom half of our room like this, but he put particle board behind the flooring. Using particle board or plywood provides more nailing points, else you're limited to nailing every 16 inches. If you're taking down the wall, you might as well replace the insulation and air seal or add insulation and air seal. Usually you face nail the first and last row; otherwise you nail through the lip.