The problem with wood is that it is a heat insulator and is hard to get the heat out of it. The best examples of wood cases I have seen have a lot of fans and usually isolated chambers for the HDs etc. Not a huge problem as long as you are aware and plan for extra cooling and airflow.
The benefits (to me) are excellent sound insulation and elegant appearance. I love anything made of fine wood with any variety of finishes. I am terrible at working with wood, but great with metal. I can appreciate metal finishes too, but it just doesn't have the same craftsmanship and ambience of wood.
Sure, it's been done before, but not often. I assume anyone with a collection of woodworking tools will love an opportunity to use them with such an ambitious goal!
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