Conifers are indeed quite rot-resistant overall, especially when dealing with the heartwood of the species. If the main goal is the decomposition of your mulch for
organic material and soil enrichment you may want to choose a different species. However, many people choose cedar, hemlock or, other conifer mulches specifically because they are resistant to decay and, often, aromatic as a secondary means to prevent certain pests. That being said, these are often wood chips from the heartwood and it is used in an ornamental capacity.
I have no personal experience using Leyland Cypress as a mulch, but as far as I am aware it is not a known allelopath according to the USDA Plants Database. Coniferous needle litter does differ in properties as opposed to broadleaf litter but I don't believe this poses a problem. If you are worried about it, you could always dilute the conifer mulch with the straw you mentioned and observe the effects on your land/plants first.
That being said, I have also observed the relative sparsity of the understory of a coniferous forest. I had always assumed it was the allelopathic tendencies of certain conifers that caused this but I have begun to believe the primary cause is the density of the forest. Specifically, the dense forest cover provided by the canopies. Combined with most conifers' preference for acidic soil and year-round coverage, it may be too difficult for many plants to survive. I'm sure there is also an interplay of moisture as well.
I hope it goes well for your plants, mulching is a great choice!
Hope this helps,
Eric S.