Holes in wooden blocks (without liners) are not a great idea because if you just leave them out for several years, what you are doing is building up a hotel for bee parasites, which can actually reduce the number of bees in your
yard.
Here is what happens:
1. You put out wood block with holes
2. In the early spring, the bees find your block and lay eggs in it, along with a few parasites
3. The following spring, the bees hatch, and lay eggs in the block again. The parasites are still in the holes, and the bees also bring in a few more parasites.
4. The parasites have a heyday.
5. Go to step 3
Over time you will have tons of parasites and not so many bees.
If you throw out your block, you will almost certainly be throwing out unhatched bees. In my nests I have never seen a time when all the bees are out of the nests (I use tubes). If you wait until all bees have hatched, some bees will have already laid eggs. But I suppose that may kill the least number of bees if you throw out your block at that time(?).
A better approach is to put the whole block inside of a
cardboard box or paper bag which has a few 1/2" holes cut near the bottom (see
http://www.crownbees.com/how-do-i-transfer-from-old-blocks-or-straws-to-new-straws/ ). The bees will hatch out of the block,
land on the floor of the box/bag, and find their way to the holes. They won't go back into the hole in the box/bag. You
should have other tubes/blocks available for them to use. Once they all hatch, you could take the block out of the box/bag and clean out the block. So if you had two blocks, you could rotate them like this. But like I said, I would use tubes instead of blocks.
I use bundles of teasel stems for my bees, which is working great for me. Any hollow plant stem will work as long as the hole is about 5/16", but I include stems all the way from 1/4" to 1/2", and the bees use all of them. I have had some other bee species use the smaller stems (not sure what species). I think stems would be great for kids because all they have to do is assemble the bundles (vs. drilling holes). If they are old
enough they could cut the stems too. And if they are really old they could go out and collect the stems from the field. Many plants with stems are invasive, so most landowners would love for people to come cut them down. I cut mine right before they go to seed. Bamboo stems also work well, but around here teasel is the easiest to find.
If you want to make tube bundles, I recommend holding them together with bulk 1/8" bungee cord, something like
http://www.amazon.com/Paracord-Planet-Shock-Various-Colors/dp/B00HAMI6R0 . I used to use rubber bands, but even the biggest ones would not last through the summer. The bungee lasts a long time. I have been using regular bungee cord to hold bird houses, and some of it is 12 years old.
If the bundles are going to be exposed to the weather, you should make some kind of roof for them (two pieces of cedar
fence board or something like that). You can also make or buy boxes to hold the tubes. I have used plant pots for this purpose. They are OK, but I think I am going to switch to just bungee cord. I have problems with the tubes falling out of the pots on windy days.
I recommend that you open your tubes and clean the cocoons.
http://www.crownbees.com/category/what-to-do/harvesting-cocoons-in-the-fall/ has good info on that. That is a great activity for the kids to help with, because they can see what is going on inside the tubes. To open a plant stem, hammer a chisel through the joint in the stem and twist the chisel. This will split the stem along most or all of its length. Bamboo tends to split all of its length, teasel usually doesn't split quite the entire length, but you can just pull it apart with your hands. I can provide more details on how I clean them if you'd like.
Back to your original question about the longterm impact - as long as you leave about 60 bees per acre, you should not be negatively impacting your native bee population in the long term. And of
course the bees will be nesting in other places than the housing you provide (otherwise you would not have any native bees). If you re-release all your bees, their population will grow, up to the carrying capacity of your property, which depends on how much pollen is available to the bees, nesting sites, predators, weather, etc.