Yes, we actually followed the construction of a house made out of straw bales in downtown Montreal.
Straw bale construction is seeing a resurgence, with over 2000 a year being built in the US and 20 to 30 a year in Canada. Originally a dry prairie construction practice, it is spreading across the continent. Of course there is worry that there might be moisture and rot problems in more humid climates, so houses like the one in Montreal are being scientifically studied by many groups, including the CMHC.
Julia Bourke, an architect in Montreal, was the brain and brawn behind this house. This house was made with a wood structure and the straw bales were used for infill. Follow this link to information on one house that used the bales themselves for structure.