Sgt911,
I have a log home made of pine logs from northern lower Michigan. They were the most reasonable we could find as far as logs, and I preferred bigger diameter logs than cedar. But if carpenter bees don't mess with cedar that would be a definite advantage as they sure like pine logs.
A log home is nice but as you've found out they are more expensive to build than a typical conventional home, and lots of upkeep. We also have to spray for carpenter bees every spring. I should have powerwashed and stained it this year but fiances were to tight. I will however do so next year. It seems we have to restain every four or five years.
If I had to do it all over again I may have gone with a conventional home for the above reasons. The garage is not logs. My parents build that garage and an apartment for me free of charge for a place for them to stay when not in their condo in Florida. I got a free garage out of it and it increased my property value about $60,000. My dad and mom are a joy to have and addtiionaly my dad cuts the grass and does just about anything I want him to or let him do.
