Basswood is great for carving and building models. I use the material extensively in my scratchbuild models. The only place I use plastic is when something clear is required.
Any wood sealer will work well. I personally use Minwax Sanding Sealer. Read the instructions on the can and away you go. Sand the wood down nicely, don't really need more than around 200 grit, then apply sanding sealer. Once dry, sand as smooth as you want. You can get a nice, smooth, surface using this type of product. I have found the Minwax products to be reliable for wood. Anything they sell is about as good as you can get.
I also use sanding sealer on silkspan on my WWI models. Does a nice job of sealing the fabric and works a lot like dope.
Ken