Hi,
It is not possible to examine the requested url for https sites without MITM because that information is encrypted. So e2g can only check the bannedsitelist in this case.
If you want to block all whole sites in a banned url list then you will need to extract the sites from the url list, stripping away the url part, and then add these sites to a banned site list. However this is likely to over block.
If you want to use the full benefits of e2guardian (search filtering, content filtering, url filtering etc) then now that the web has almost entirely moved to https, MITM is the only way to do this. If you have any form of central control over the devices (windows group policies, chromebook policies etc) then the cert can be automatically installed.
The log file can be anywhere that can be written by the user e2guardian is running as. See the ACCESS_LOG section of e2guardian.conf for details of setting location of access.log and various settings which determine what is logged. And the MONITORING section for statistics logging.
Philip