We (at Elandan Gardens) don't treat the inside of the trunk with anything except lime sulfur,
We (a little farther north of Elandan Gardens

) have been known to use Miniwax epoxy resin wood hardener to preserve non-conifer deadwood features, which lack the natural pitch that preserves the deadwood so well on conifers. The lime sulfur is a strong anti-fungal (and done for visual effect) and fungus are the main source of rot, but it won't hold a non-conifer for long.
The Chinese, OTOH, have traditionally allowed the tree to simply take it's natural course, with the deadwood gradually rotting away as it would in nature, and the effects there can be pleasing as well.
I use a 1/4" core box router bit almost exclusively - a bit harder to handle than the 3/8" bit, but then I
like the "happy accidents" when it catches and rips the wood a new one, or flies off somewhere I wasn't planning to carve.



When age and the elements start the process on a tree in nature, it does not often look too neat or overly planned, and yet, to me, is beautiful for that very reason - so that's an OK image for me often times. But start out trying to do a thoughtful, neat job - otherwise, as Dan says, you'll simply end up with a bunch of kindling and sawdust.
I don't refine the work with a Dremmel too often, preferring a rougher look most times, but to do so, or to hide the toolings of the core box work, or simply to do smaller work, it works OK. The RPMs and torque are not in the league of the die grinder, and the non-carbide bits don't last worth a lick, but it's OK. Someone, however, is now making a smaller tapered bit that will fit in the die grinder, and Dan uses one to good effect for the finer work.
I recommend you get a die grinder with a deadman's paddle.
And yes, as Vic says, do practice on something less precious than that gorgeous hornbeam base first!
Welcome to the thrill and beauty of power tools!