I just started building my new cabinets for our kitchen. I am using birtch plywood for the insides and red oak for the panels and faces. I have to tell you that they look awesome (so far). The white birtch insides (guts) really brings out the oak and of course puts out much more visible light whille looking into the cabinet bottoms and draws.
So I say, " Use birtch. It is a fine specimen."
I used 1/2 " birtch plywwod for the backs bottoms and sides. I used 3/4 red oak on all visible outside panels. I used red oak on all faces, panels, styles and rails.
Good luck to you.