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Bill Tindall, E.Tn.
I finish my stuff everywhere except drawer runners. A finished case inside aids stability. Drawers running against a hard waxed finish glide effortlessly. The inside of a drawer finished stays bright and clean looking. In a desk drawer a finish on the inside does all the above plus offers some protection.
Do a test. BLO plus Waterlox vs just Waterlox. I predict you can't tell the difference in appearance. BLO is over promoted by authors who aren't experienced finishers.
Waterlox provides hard fast drying finish. I have been experimenting with several varnishes the past few years and I am settling on Waterlox because it cures hard, dries fast and provides a lovely color and luster to walnut and cherry. I don't agree that it stinks forever. The "varnish smell" is a result of the curing chemistry. I can tell when a varnish has thoroughly cured because it stops smelling like curing varnish(about a month for PL 38). Given that you already have Waterlox and probably know how to use it, I don't recommend that you not use it.
We have a professional jewelry box maker in the club. These boxes go for $500( seen at Southern Highland Craft Store near Asheville). The insides and outsides are finished with Minwax wipe on varnish and after cure the insides don't stink that I can tell.
I use Zinsser shellac for case interiors and drawers. Coat, dry, sand 220, recoat, done. It is cheap, goes on easy with foam brushes from Woodworkers Supply (but not all foam brushes), dries very fast, sands easily, provides a hard surface for drawers to slide against.