the advantage with CNC is you can take off very small cuts using high feed rates and i believe this vastly reduces breakout.
Nope. Wood tears and chips just as easily on a CNC as it does with your hands. Sometimes even more.

so whats a good wood to use then as im well aware mdf is poo
The harder it is, the better the finish will probably be.

You can get a good finish on MDF, if you seal it with epoxy, and sand until glass smooth.