House wraps like Tyvek (and there are many), are fine when installed properly. There is a right way and a wrong way.
If you have foam insulation under the siding, then you don't need anything else.
As far as being to tight, I can only relay this true story of my own experiance. I'll keep it short.
About ten years ago, I sided three sides of a very old house. I did the sides and the back and the owner had someone else remove the clapboards on the front, install Tyvek and re-clapboard the front to look the same.
I used 3/4" styrofoam under Quad 2 1/2" vinyl siding.
About six months or so later, the owner contacted me and told me the styrofoam was making her ill.
Upon further inspection it turned out that when she sat in the front room of her house, she became ill and when she was in the back she was fine.
It turned out that her house had horse-hair insulation, and the Tyvek was installed upside down and moisture was being traped in the wall and getting the horse-hair wet and she was allergic to the fumes of the horse-hair.
She ended up stripping the wall, removing the horse-hair, from the outside, and re-doing the job.
I don't know if she used Tyvek again because my work was fine.