You have to be careful with run-out, but it hand-planes very well. Never made a paddle, but once made a solid body for a Stratocaster out of it just because money was tight and I happened to have a piece just the right size. I really didn't expect it to work that well. All the Cypress I had seen was rough-cut for siding.

It does have a larger grain than most woods because of the fast growth. That's a down side. It would not be as strong as Cedar for that reason alone. Of course any wood will vary from tree to tree, so maybe you can get a good tight-grained piece. It also does not have a uniform color, but that could be good or bad.

Good luck,

Malcolm