I keep hearing that this doesn't scale. When I worked at Google, we used this sort of system to monitor our Google Fiber devices. They just uploaded their logs every minute (stored in memory, held in memory after a warm reboot thanks to a custom linux kernel with printk_persist), and then my software processed them into metrics for the "fast query" monitoring systems. The most important metrics fed into alerts, but it didn't take very much time to just re-read all the logs if you wanted to add something new. Amazingly, the first version of this system ran on a single machine... 1 Go program handling 10,000qps of log uploads and analysis. I eventually distributed it to survive machine and datacenter failures, but it ultimately isn't that computationally intensive. The point is, it kind of scales OK. Up to 10s of terabytes a day, it's something you don't even have to think about except for the storage cost.
At some point it does make sense to move things into better databases than logs; you want to be alerted by your monitoring system that 99%-ile latency is high, then look in Jaeger for long-running traces, then take the trace ID and search your logs for it. If you start with logs, you have that capability. If you start with something else, then you just have "the program is broken, good luck" and you have to guess what the problem is whenever you debug. Ideally, your program would just tell you what's broken. That's what logs are.
One place where people get burned with logs is not being careful about what to log. Logs are the primary user interface for operators of your software (i.e. you during your oncall week), and that task deserves the attention that any other user interface task demands. People often start by logging too much, then get tired of "spam", and end up not logging enough. Then a problem occurs and the logs are outright misleading. (My favorite is event failures that are retried, but the retry isn't logged anywhere. You end up seeing "ERROR foobar attempt 1/3 failed" and have no idea of knowing that attempt 2/3 succeeded a millisecond after that log line.)
For the gophers around, here's what I do for traces: https://github.com/pachyderm/pachyderm/blob/master/src/inter... and metrics: https://github.com/pachyderm/pachyderm/blob/master/src/inter.... If you have a pipeline for storing and retrieving logs (which is exactly the case for this particular piece of software), now you have metrics and traces. It's great! I just need to write the thing to turn a set of log files into a UI that looks like Jaeger and Prometheus ;) My favorite part is that I don't need to care about the cardinality of metrics; every RPC gets its own set of metrics. So I can write a quick jq program to figure out how much bandwidth the entire system is using, or I can look at how much bandwidth one request is using. (meters logs every X bytes, and log entries have timestamps.)
I think since we've added this capability to our system, incidents are most often resolved with "that's fixed in the next patch release" instead of multiple iterations "can you try this custom build and take another debug dump". Very enjoyable.