We average 350" of snow a year. I have walked through snow chest deep before to get to my truck that more closely resembled a white loaf of bread in the driveway. There are no gutters here.

Yes, you treat the logs for weather and bugs. Red cedar is the exception. Bugs don't like red cedar and it doesn't rot. I just haven’t heard of “pressure treating” them before. I think it’s just a term that we are confusing. Pressure treated lumber for example is treated with CCA (chromated copper arsenate). This stuff is highly toxic. If you throw some on a camp fire, it could actually kill you, and will most definitely make you puke your guts out. It sounds as if what the builder used is OK.

It sounds as if the owner is giving you honest feed back. That’s a good sign. I know this type of log home construction and I helped a friend build one. If done correctly, they are very tight. Because the logs are milled and use a tongue and grove fit, they can be built that way. They also dry them quite a bit before they mill them. I’d ask for more clarification around the “rods” they used though.