TAB, I'm sure you know this, but the best "movement" underlayment for flooring is the rosin paper. Tar paper makes little "sticky" noises when you walk on the floor. Rosin isn't really a moisture barrier, though. Good call on the liquid barrier.
In my specifier career I never saw bamboo considered as "green" except for the fact that it wasn't a more rare hardwood, and that bamboo is basicallly a weed and hence could be considered a renewable source. Personally I think it works better as a decoration like wainscot than as a flooring.
I agree with you...diagonal is no harder to do, and I think it hides any blemishes in the material a little better.