We lived in a contemporary 80 home with huge vaulted cedar ceilings and cedar trim. In fact, we even had #2 structural cedar in the walls, joists and rafters. So, the cedar house and cedar trim worked out quite well, and never smelled like a cedar blanket box.
The softness of the trim made it suseptible to damage on corners and base in heavy traffic areas like around the staircase. The material was fairly easy to fix, and sand. Our window sills and stair bannisters were done in oak. Of course cedar costs a fraction of hardwood moldings or boards and has more richness than pine.