Yes, bamboo works well in the tank. If you put dried bamboo in, it will slowly deteriorate (nothing wrong with that, it happens with
driftwood, too.) You can coat it with an aquarium-safe shellac, though, and it will last as long as your aquarium does. It depends on the look you're going for.
Alex: The stuff that people put in their aquarium is called lucky bamboo, and isn't really bamboo. It kinda looks like bamboo, but it's not a grass. It's a member of the dracaena family. Lucky bamboo works well alive, but it rots pretty quick if you put dead stalks in. Real bamboo probably wouldn't survive if you put it in the tank, but the dried stalks work well as decor.