I like to use [painted] wood when i can. If the panel is flat all around the hole/opening, the wood will work. I prefer it over the alm flashing because its more rigid. It really seemed to stiffen up the whole panel on my Ram's doors. But the flashing works better when you need to contour it to fit the bending shape of your door panel (like Don appears to have done).
I'm gonna be opening up those doors here pretty soon, I'll see how the wood is holding up. From the inside, it all appears fine. I live in a pretty dry climate though too.