I grew up in Sevier County and my family still lives there. What you've heard about Gatlinburg/Pigeon Forge is absolutely true. If you don't know the backroads, you can't get anywhere because of the tourist traffic. Now, many businesses are referring the tourists to the backroads routes, and they are getting very crowded, with much more traffic than they were designed for...
I'd suggest that you look either North (toward Cosby or Newport) or South (toward Maryville/Townsend). There are still a few bargains to be found, but you'll have to spend some time doing it. Also, if you have children, check out the schools very, very closely since the quality varies very much from community to community. Also, I'd second the recommendation that you spend some time there before you buy. Also be aware that zoning and building restrictions in many areas are minimal or nonexistant. That can be either a blessing or a curse, depending on the value that you place on your property.
As an example, you mentioned Cosby having reasonable prices. There's a reason for that -- Cocke County (Cosby, Newport, Del Rio) is very "rough" -- a somewhat "backwards, redneck" kind of place in comparison to areas around Knoxville. Cocke County used to proudly call itself the "Moonshine Capital of the World" and there's still moonshine made there, but now marijuana has likely replaced it as the "income producer." Consequently, they will not be warm and welcoming to "outsiders" and in some areas to venture off the road onto someone's property could be taking your life in your own hands...
In comparison, most areas of Blount County (Maryville, Townsend, Walland, etc.) is much more tolerant of "newcomers." There's still some communities, such as "Old Chilhowee" that I would check out very closely before I'd buy property there. Blount County, as mentioned, has been "discovered" and the real estate prices are going up like mad. Monroe County, farther south of Maryville, has even more affordable real estate, but some areas of it can be a bit "rough" too...
Some of what I've said sounds blunt and critical -- but it's coming from one who has roots there that run very deep (I have two sets of great-grandparents buried in the Smoky Mtns Nat'l Park, one set in Cades Cove and the other in the Sugerlands). I'm simply calling a spade a spade...
With all that said, I just bought a nice tract in a restricted development in Walland a couple of years ago and am planning to retire back to there in about 5 years...
You may also want to consider the other side of the Tennessee River valley, going up onto the edge of Cumberland Plateau, such as Campbell, Anderson or Union counties. You'll find some gorgeous views there also, and real estate prices will be significantly less than closer to the Smokies. Work, however, becomes more of a challenge...
Here's a link to the Knoxville Area real estate database -- it has listings from all the counties I've mentioned, plus more.
Knoxville Area Association of REALTORS
