Two paths to take:
1) if you know which value will produce conservative results for your purpose, and you're comfortable with that conservatism, run with that value.
2) Guess whether your walls are cracked and confirm your guess after you run your analysis. Walls where axial loads dominate over flexural demands tend to 0.7. When the reverse is true, 0.35.
The Canadian code has a formula for estimating stiffness based on axial load. It's just for seismic considerations however.
I like to debate structural engineering theory -- a lot. If I challenge you on something, know that I'm doing so because I respect your opinion enough to either change it or adopt it.