Hi Russ,
Your sugestion is, in my opinion, the best way to bend in general. There are other ways which will work and I've outlined some of them here. There are probably other methods, in some cases the wood can be so flexible and the bending so slight, none of them are needed. On the other hand, depending on the wood, warping or shrinking can happen. But, for almost all application, wetting and clamping is the accepted norm.
soaking in water - you do not need to leave the strips in water too long - depending on the type of wood and its thickness anywhere from a minute to a few minutes should be enough. The idea is not to soak the wood all the way through, just have it absorb enough to prevent splitting. Down side it the wood must dry to take on the permanent bend.
steam - putting the planks into a tube and passing steam through is one method; personally I don't see any advantage over wetting, in fact this method takes more time, can be dangerous and is more parts/labor intensive. Remebering that we are working with thin stock this method might be better on thicker wood than we will be using.
combination heat and steam - is accomplished by first wetting the wood then using a tool that is heated to bend the plank. The bend takes it shape almost immediately as the heat dries out the wood imparting a permanent bend. The tool is available from numerous modeling supply stores that specialise in wood kitsboth on the Net and, if you're lcuky enough, locally.
sliting the back side of the plank to be bent - this method involves making a series of slices, fairly close together, part way through the wood on the back side of the plank which releaves some of the stresses when bent. There are a couple of tools on the market that do this job, but it can also be done with a straight edge and knife - be careful not to make the slits more than 1/2 way through the wood or your bend, instead of being smooth, could turn into a series of flats along the arc.
As for the wood itself, most commericial strip wood used in model building is clear, grade "A" - the grain is tight, runs the length of the board and is fairly straight. The grain, and type of wood, determines how successful your bend will be. Not always the case, but if you find it hard to see the grain pattern it probably is a good piece to use.
Another thought - although not commonly used today, strathmore board, a form of heavy paper in various thicknesses, can be successfully used. Resembling post card stock it is easy to work with and can be sanded, although carefully. Its chief advantage is no soaking - or any preparation - is needed as is is as pliable as paper. Downside is it must be sealed prior to painting and doesn't take stain like wood as it has no grain. But remember, at the scale we're working with in this build no grain would be visible on the model. This paper used to be included with many older models, often being printed on for replicating fine details (doorways, windows - on the older Model Shipways tug it was the wrapper for the wheelhouse). Available in art and craft stores.
By way of explanation - I have been a model railroader for most of my life and am just getting into ship modeling now. I have lurked at alot of ship modeling sites over the past year and most of the above information comes from those sites and my RR modeling (strathmore board) - it is presented here for what its worth to the group.
OK, back to the modeling room (basement) to try the veneer thing - let the group know what I've come up with in a couple of days. Another source of veneer is ebay - the usual disclaimers apply and you take your chances when purchasing . I have no interests here except that I know it is a source.