Your climate is different than mine in SE Alaska, but here's my opinions on the three types of insulation you mentioned.
1. Cellulose: I don't care for cellulose. It absorbs water and settles into a brick and it's mold food.
2. Spray Foam: Expensive, there are options that don't have VOC problems and they form the vapor barrier. All the designer home builders up here use it. I'd go this way if I could afford it.
3. Blown insulation: I like it and have used it. It doesn't seem to absorb water and it is easy to install yourself.
I vote for #2 or #3 depending on your budget.
Erich
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