The cost of Propane in the U.S varies greatly on region. Heck.. Sometimes within the same state it fluctuates more than $1 a gallon. We paid around $3 a gallon (when we burned it). And spent about $3,600-$3,800 a yr in heating cost.
My worst Winter was almost 5 ton (prior to installing wood stove). So pellets would have to go over $700 a ton to not be a viable option to me. I also see the whole process as a hobby (cleaning, hunting for fuel, watching the fire, making sure its running as efficient as possible, etc). So even if it was close to the same $$$? I would still burn pellets.
I installed a Pellet furnace and a Woodstove last season (Nov). The addition of that helped to cut down on my pellet consumption (wood stove). I burned 2.5 ton last season and about 3-3.5 cord of wood.
The furnace works almost to well. I only run it below 25° and then run our freestanding Quad upstairs, when its above 25°. I always run the Woodstove to help reduce pellet use, but when I run the furnace, is when I really benefit from the wood stove. I didn't hook up the cold air return on the pellet furnace for one reason. I can get it 90° in the basement with the wood.. Then when the furnace blower kicks on, it sucks that 90° air from the basement and distributes it through the duct work, to the bedrooms above. If I dont have a fire going in the woodstove, then it takes away from the efficiency of the pellet furnace. But with a Wood Fire going, it adds to the efficiency.
Here are a couple pics of my stoves (you showed me yours?
Dont take out of context)
The Quad, then the Pellet furnace, the 17 yr old Englander 25-PDV, and the new Englander 10-CPM (set-up in shop now).