What part of a ship is it not a good idea to make our of balsa? could I just make the whole ship from balsa? ribs, water channels, siding, bottom, deck, superstructure...
You could make it all balsa, but you shouldn't if you want it to stand up to combat. Other than the skin you don't need to use balsa for anything. Some people use it for water-channeling and/or superstructure but that's about it. Using it for any structural components isnt really worth the trouble. High quality birch plywood and fiberglass are the most common structural materials.
get a scroll saw for like a hundred bucks and make everything out of plywood. I used balsa to make a lot of my stuff and it did NOT stand up to a fighting season, so now I am rebuilding a lot of it. Lesson learned though. Plywood with a scroll saw is a world-beater for this hobby. Don't even use Balsa blocks for the bow and stern hard areas if you build wood. It may take some extra time, but almost any other option is a better idea.