You can harden the surface of balsa wood if you have carved something out of it, to make painting easier, by 'impregnating it with large amounts of either balsa cement or polystyrene cement, just spread a big dollop of it over your masterpiece and work it into the wood, which is pretty porous, as it isn't very dense.
As an alternative to actually using Balsa in your finished model, you can use it to carve a mould for 'vac-forming'. Useful for aircraft canopies etc. Simply carve the required shape from a block of reasonably solid balsa, then press it into a block of DAS modelling clay. then you will have a workable 'vac-forming' mould. Attach a sheet of discarded transparent 'blister pack' material to the DAS bit of your mould and secure it with dressmaking pins pushed into the DAS clay at fairly close intervals around the 'entrance' to your mould. Heat up the blister pack material with a hair dryer or heat gun and when it goes soft, push your wooden carving into the mould. Let it cool, take it all apart and hey presto! a 'vac-formed' part! Remember to add a bit to any parts you need to make to allow for cutting waste away if you try this though. I have successfully used this method to produce the nose glazing on a scratch built large scale B17 in the past, which gives you some idea of how useful the technique can be, and how useful balsa is.
Amen to using it for wood in dioramas too! There is no substitute for the real thing! Scorched timbers in bombed out houses, floorboards, dropsides for military trucks, large scale scratch-built figures all these and more are possible with balsa.