Jack Armstrongs first recording was in 1949 - a 78EP called Chevy Chase/Rothbury Hills. There is also a documented connection to Hollywood and Burl Ives - who knows where that led?
The first available recording of the northumbrian smnallpipes was 1928 and featured Anthony Charlton (Pipes of Three Nations) it is not widely regarded as the eptiome of classic piping. A far superior and more valuable recording was made three months later featuring Tom Clough - the prince of pipers.
Getting back on topic, NSP tunes turn up in all sorts of places: Gustav Holst produced the most originaly titled "Piano Toccata - founded on the Northumbrian Pipe-Tune 'Newburn Lads'" in 1924. The tune is identifiable in there and it won't be the only that has escaped.
As for using the ballad tune as a theme for something more complex. That would work, I've seen a number of variation sets for it but all within the NSP world.