We've had a fake tree for the last 7 yrs. We solved the 'scent dilemma' by placing heavily pine (or balsam) scented candles or potpourri in the same room. You don't have to burn the candles; if you can get hold of some "Yankee" brand Candles, they are very heavily scented just sitting there!
As far as the looks of the tree, there are some gorgeous fake trees out there now, and once you get the lights and ornaments on it, you can't tell it's fake! I wrap tiny white lights around the branches inside the tree, then put multi color lights around the outer branches. It is a lovely effect! Why don't you go look at some already decorated in the stores and think about it during this season. You could probably get a good deal on one during the after Christmas sales.
We don't put our tree up until mid-December, but we always leave it up until Epiphany or later. We couldn't do that with a real tree with the heat on in the house. It would dry it out WAY too fast!
Suzi - thanks for the suggestions. I'll pass them along to my family and see what they think.