We ended up using a modified traditional filler. The modification was to leave out the boiled linseed oil and japan drier, and cut back the amount of varsol. The resulting mix went on pretty well and dried a lot faster. Paint over top et voila, we have a waterproof cover that is nice and solid yet reasonably flexible. I think a third coat might have been prudent though.
The real test will be in the field as I am not overly delicate with my boats. Unfortunately I do not appear to have saved much weight in the process. The canvas was lighter yes, but only marginally so. It looks like the way to save weight is by thinning out the ribs and planking. I have a 16 foot Langford with really thin ribs and plank and it is feather light.
Anyway, the filler experiment looks promising. I did talk with our painter at work and he showed me a flex agent that they use with polyurethane paints to make them more flexible. That looks promising too but is rather expensive. Polyurethane may be the future for below the waterline work.
Christy