Hello,
Drainage out the bottom,or at least a free flow through there is a good point. In Holland we have a particular approach to window frame construction in which this specific matter is considered and even though now it has been generally abandoned and glued joints are normal, this was not always so and personally I never glue or in any other way treat these joints. As for framing joints of a structure, in principle it is the same and I think this coating idea would do more harm than good. What about the principle causes like how the wood has been processed including the presence of the pith? Is the heart boxed in or has it been sawn out and a lot of other things?
Greetings,
Don Wagstaff