Need Advice: Apple Wood Smoke

I've been collecting downed limbs off of our tree over the course of the summer - you can see the stack I've set aside for drying here.  My question for the experts...I noticed some lichen on the bark; do you think I can use it like this, or should I skin it down to the wood?

Also, I've noticed the recipes always mention "wood chips" - hey, where I am doing this, I have access to the real thing, and don't need to factory bagged stuff from Whole Paychecks.  So I will prbably break these down one more time and use them as small logs - like my neighbor Dan does with the hickory he collects on his property (I'm am remembering some awesome ribs he made just now!)...

Speaking of the apple tree, it has really had a tough year.  We lost two of the three main trunks this year due to the winter storms.  But our remaining one outdid itself this year.  I bet we got two or three bushels off of it.

There are so many, even the deer can't finish them.  I've been contemplating collecting the ones on the ground in a five gallon bucket and passing them along to a friend raising some pigs - putting the wasted apples to use.  I'll get right on it.