HI Leonard,
You really make my point that this forum is a great place to learn new things. The idea of fungal growth being inhibited by the chips from aromatic species is something I had not considered. I agree that for soil building that could be a problem. I am going to check out that book -- sounds good.
There is another problem associated with
wood chips in general (not just those containing aromatic oils and resins, but all wood chips)... they do take up nitrogen from the soil while decomposing so, under ordinary circumstances, could make it necessary to add nitrogen for the first couple of years they are in the soil. You can easily get around that by putting extra manure on your crops under the mulch, or by simply starting out with well-seasoned wood chips.
I have personally not found cedar sawdust to be a problem because my chief aim in using the cedar sawdust and chips I get here (free and by the truckload from the mill a mile away) is as a thick mulch. Our summers are so scorchingly hot that we really need deep mulch to keep the
roots cool, and I like the sawdust over
straw or similar mulches because it is not seedy. (We have just restored our glades to eliminate invasive species, so I don't want to introduce more.) I also like the cedar sawdust for the very fact that it does NOT break down quickly -- neccessitating continual replacement -- and because the site of our main garden is a former livestock pen (goats) and heavily nitrogenous already. If anything, the sawdust is helping to balance out that heavy nitrogen load from all the years of animal use.
I guess it really depends upon your ultimate goals, and like pretty much everyting else, one situation is going to be different from another. In some cases it might not be a good idea to use aromatic species or any wood at all as mulch, while in others, it may be exactly what you need.