sundale,
Please tell us how you design walkout residential houses if you do not use a wood diaphram. Concrete? It does not seem economical to build the way you describe.
I know that the walkout house I live in that was built 25 years ago works like a charm still today.
I think you should re-analyze your system. Why are you designing a cantilevered wall? Just because the other side is wood framed and not full height masonry? Then all wood buildings would not have a shear wall diaphram system. Anyone else agree or disagree with that?
Also, if you were to...