A simple answer to your question would be yes InnoDB would be the perfect choice for a multi-billion row data set.
There is a host of optimization that is possbile.
The most obvious optimizations would be setting a large buffer pool, as buffer pool is the single most important thing when it comes to InnoDB because InnoDB buffers the data as well as the index in the buffer pool. If you have a dedicated MySQL server with only InnoDB tables, then you should set upto 80% of the available RAM to be used by InnoDB.
Another most important optimization is having proper indexes on the table (keeping in mind the data access/update pattern), both primary and secondary. (Remember that primary indexes are automatically appended to secondary indexes).
With InnoDB there are some extra goodies, such as protection from data corruption, auto-recovery etc.
As for increasing write-performance, you should setup your transaction log files to be upto a total of 4G.
One other thing that you can do is partition the table.
You can eek out more performance, by setting the bin-log-format to "row", and setting the auto_inc_lock_mode to 2 (that will ensure that innodb does not hold table level locks when inserting into auto-increment columns).
If you need any specific advice you can contact me, I would be more than willing to help.