My preferred body wood at the moment is Spanish cedar... it's very *VERY* soft, so you have to be careful, and a hard finish is recommended, but it is so lightweight and resonant, that I just love it. I generally make my bodies 1 5/8" thick, give or take 1/8"... 1 3/4" is the standard that Fender set out years ago, because that was a dimensioned 2" board, and was easy to acquire from nearly any wood supplier. This figure has sort-of stuck with the industry... which is hilarious, as Leo Fender wasn't a musician, he was an engineer.
You know, I've actually seen a few people on the MIMF who have made instruments with some form of pine as the body wood, and although it is very soft, they seemed to have decent results with it. The main issue is that it can "leak" sap for quite a while, which isn't condusive to some finishes, and it is so soft that it takes dents practically just by looking at it.
I've heard decent things tone-wise about it... also, I know a guy who made a 5-string upright bass, and used knotty pine as the top. It sounds decent. Very mellow, but not in a bad way.
I guess the point is, that "tone wood" is a misleading term. I have heard guitars that sounded great that ended up having plywood bodies... the electronics made up for it... I've also heard instruments constructed with top notch materials that still sounded like crap. Soundness of design and construction is as important as materials...