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In all seriousness though: Pretty sure this is referring to using straw as insulation, not structural elements.
Haybale homes have been around for ages, mum said they popular in the the 70s with the earth loving movement, and I recall them getting popular on pinterest again in 2012ish with the eco house movement.
You stack the bales, run insulated cables and plumbing as needed, then render over the whole lot.
I think the newer developments compress the straw more than older bales, though I'm not actually familiar with older hay bale homes.
Seems like it could be a disaster if you get a leak of any sort.
People lived that way for thousands of years. You do a bit of yearly inspection and maintenance. It's literally slapping mud on the wall to fix it, not too bad.
It just seems like getting a small leak that you don't know about would cause a mold nightmare. Hay costs more than fiberglass insulation, so I guess I don't see the benefit.
I forsee many issues with mould
The cob or other earthen plaster incorporates clay or livestock manure which add hydrophobic and polymeric properties, which then air-cures to seal out moisture, and it's thick so if it gets wet it has to get really wet to penetrate the hay. Ideally these also have large overhanging rooves to sheet away rain.
I'd be more worried about fire. High temperature plus a bit of moisture from, say, a leak, will cause hay piles to spontaneously combust.
Fire needs air. Hay bales are entombed with plaster or mortar. So you can't really burn. They are also treated against burning and other issues.
Nope. Look closer and you will see that those wooden support beams are totally also made of hay