Thanks, Barb!
For this project, I chose MDF for the reasons you mentioned (flatness and stability), plus cost. A 2’x4’x1/4” MDF sheet is about half the cost of a similarly sized plywood sheet at the big box stores near me. The plywood there is not always of good quality there.
I used MDF a lot before I bought a planer and started using hardwood lumber more. MDF is a good substrate for veneer. It’s also frequently used for speaker cabinets. On the down side, it’s heavy, doesn’t hold screws well, swells if you get it wet, and, as you mentioned, generates really fine, unhealthy dust.
The poly does seem to seal it well. My old sled was made of MDF, and it stayed flat for the years I used it (and I keep it in the garage, where it’s subject to wide humidity and temperature swings).
If I could buy Baltic birch locally, I’d prefer it over MDF for almost anything.