Actually, you want to build the block wall full height, then fill the cores with concrete so that it's a monolithic continuous column inside the cores of concrete, which tie all the blocks together.
If you're going to use glass, you don't want glass in contact with concrete. Even a silicone gasket might cause glass failure. Reason is that any little imperfection in the concrete could cause the edge of the glass to crack if there is movement.
I agree with the concerns of "skimming" the walls with concrete. I thought about doing this. You'll find out that doing that is going to end up being about 5x more expensive due to the treatment of the thin concrete. As stated, the concrete would need to be a special mix to hold up at that thickness. I think you'll find out that a wood frame will be more expensive than block. If you're set on wood, I'd suggest using some other type of lining other than concrete. The Fish Guy (on the cichlid forum and here) used a sort of concrete panel called hardiboard and coated that with drylok, although sanitred would work as well.
Don't let this stuff scare you away from the project though!! You're going to get lots of comments here from the folks that like to over think things and suggest over building to an extreme. I do suggest consulting a structural engineer first though.