I've remodeled a few houses that have had OSB board sheathing and haven't seen any falling apart or failing to hold nails. Personally I prefer plywood but OSB board seems to hold up well as long as it's not saturated with water.
If you have water leaking in it will eventually shorten the life of any product.
I don't have any experience with Zip Board so I can't speak to it's durability.
As far as toxic smells coming from OSB board or Zip board, I'm sure plywood has the same toxic chemicals.
I would be more concerned with products in the home giving off toxic smells more than exterior sheathing.
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