Think of it this way, the earthquake doesn't care how walls are detailed, it will just push them until either they yield in flexure (ductile response), or they had sufficient elastic strength to resist the loads without yielding.
Load keeps increasing until such time as the concrete cracks, then stiffness changes, dynamic response changes (structure softens), then again load still increases mobilising available strength. If wall yields then starts to display some ductility, how much depends on how big the event is. The design earthquake is just that, an arbitrary level of load based on probabilistic methods to achieve acceptable levels against the risk of collapse occurring. Bigger or smaller events for a given location may occur in reality.
Reality is under modest earthquakes wall starts out uncracked (potentially though not the first event it might have seen to crack it) but at the higher stiffness you naturally have a higher base shear as period is lower due to the increased stiffness. So it will rapidly get to a point under the uncracked scenario where it cracks. Most standards just take you directly to this second scenario looking at an appropriate post-cracking effective stiffness because in all likelihood it will occur very rapidly at the onset of shaking, within a cycle or two with a rapid shift towards a softened dynamic response.
You can certainly look at what you are noting, however I think you'll find the cracking moment capacity is rapidly exceeded. If it isn't then its probably a very inefficient structure possibly? In NZ at least we are supposed to ensure that the stiffness we use is appropriate and takes account of regions where there may be no cracking (most notably higher up in the structure where seismic loads in walls might be quite a bit lower). To determine how far we apply stiffness reductions up the structure it is often a bit of an iterative approach. Keep applying the stiffness reductions up the structure for a walled structure until we reach some state where we are only left with regions that have no stiffness reductions applied due to the moment demand being lower than the cracking moment capacity.