I have sided for years. They recommend that you do not put vinyl siding over felt paper. Do not put it over treated lumber. However, I do both on a regular basis. My next neighbor down the road has siding over felt. I did it many years ago and all is fine. His treated posts on the porches are wrapped in aluminum trim coil. No problems. The felt does absorb heat and retains it longer, it is a petroleum base product, maybe that is why they maybe think it will be a problem. I have projects with siding over felt that have been going almost twenty years now, so I don't see what the problem is with it. Maybe the siding companies like to sell house wrap. To me it is harder to handle a long roll of house wrap on a windy day, plus, I hate the sound of it. Felt is nice, quiet, and smooth.
Motorseven, if you are going to put paper backed insulation and felt, that is a no-no. Never put two vapor barriers together. The paper on the insulation has a tar on it for the fiberglass to stick to, and is considered a vapor barrier. If you are going to use felt or staple visqueen on the inside walls, insulate with paper-less insulation. Two vapor barriers together will accumulate moisture between them and grow mold, you don't want that. Hope this helps.