What material are you referring to, exactly? I suspect you mean the tracing paper stuff? I think 'vellum' can technically also refer to parchment, which would be a different ballgame.
I think the main problem with the tracing paper is that it indeed tends to wrinkle and not withstand wet processing very well. I think that's why those Japanese kozo-like papers are so popular in the alt. process corner. Their long fibers give the material the ability to survive the process.