I've heard that too, that removing wallpaper can be a toxic, messy job.
I prefer using fabrics with insulating backing on stretcher bars, myself. I suppose it is partially because I don't own where I live so temporary wall treatments are better for me.
If I owned my own place, I think wall paper might have its place in smaller rooms. For a large area... I don't know. It would really depend on the paper. There are lots of Japanese paper wall coverings that I appreciate most of all.
I would be careful to learn about the chemicals used in the adhesive and the dyes and materials in the paper itself - especially important in a bedroom and around children. What is that wallpaper paste made of, anyway?