Aside from the aesthetic issues one might have with EIFS, I'll throw out what i know about the product/system.

EIFS (Exterior Insulation Finish System) is used universally to refer any product with Dryvit-like finish (sand, stucco look), but unlike the 80s versions there are different versions of EIFS installations that promote much better drainage, ventillation and evacuation of moisture from the system. The problem with the EIFS that was the source of the lawuits was that the moisture would get trapped in the system. That obviously leads to problems. Obviously these new systems come with some cost. I'd imagine there are good descriptions of the various systems on the Dryvit site. This might be a good place to start.

http://www.dryvithomes.com/

As for mold, Densglass Gold Sheathing is an acceptable substrate for EIFS and will not support the growth of mold. I don't see how mold would ever get into your house through the EIFS system installed over this sheathing. I believe the same is for Densglass Silver Wall Sheathing which has some structural properties as well.

In response to one of the posts saying you can easily kick it in, there are ways of adding a higher grade reinforcing mesh that makes the EIFS quite durable. If this is a serious concern one might suggest the reinforcing mesh be installed at the bottom 42 of the EIFS.

Another thing EIFS does is increase the R value of your wall which is always good. In many areas (i.e. here in PA) the new Energy Conservation Code requires an R value of R16. 3.5 batt insulation gives you a max R15 = conventional means fall short. One way to comply with the codes is to go with a 6 wall (more $), use a product like Owens Corning FanFold Residing Board on the exterior of the wall sheathing under siding or go with EIFS.

After talking with my architect and reading the replies (thanks for that) it sounds like EFIS has some benefits but there are too many potential downsides... I think I will now look into Hardiplank instead.

thanks