I do quite a bit of milling and machining of locally grown softwoods.
I would actually reckon that Larch is harder wearing and more durable than Douglas, it's a denser and tougher timber and it should be a bit cheaper as well. Neither will give you much noticeable trouble if used fresh sawn, although Larch can be a bit of a blighter for splitting around fixings, so it's best to put in a decent generous pilot hole. Green Oak cladding does last best, but can definitely give movement problems, especially if fitted in the hotter months.
Longer lengths won't really give you any extra issues with warping, but they are a fiddle to handle and transport, so as you've said, you're best off with something shorter that works nicely in sections of your wall lengths.
Ignoring treatments (which have been well covered already), then for longest service life it's worth giving some thoughts to decent quality fixings, good roof overhang and proper guttering with any excess rain carried away from the structure. On Larch and Doug hot dipped galvanised nails/ screws will be fine (ignore bright nails, electroplate or Bright Zinc Plate (BZP)), if you head into Chestnut, Oak, WR Cedar then it's best to use stainless fixings everywhere as the tannins will eat cheap fixings.
Even the really non durable species deliver really surprising results if the building is detailed well and the timber gets a chance to dry off after getting wet.
Kiln drying cladding is usually for convenience of speed and weight removal for transport (relevant when it comes to Canadian or Russian timber)- it's not really an issue when it comes to stability. We've seen a few instances where people have fitted kiln dried timber externally and had problems when the boards have swelled and blown themselves off the supporting framework. Most of the more durable softwood timbers are so well behaved that they can be fitted straight off the saw without too much worry.
Photo shows a machined channel cladding in West Sussex Douglas Fir...