A quick and dirty hack that should work in all shells is to (temporarily) make your log an external script instead of a function.
In bash you could also use a trap '...' DEBUG and shopt -s extdebug combination, which is much more versatile than set -x. Example:
debug() {
        local f=${FUNCNAME[1]} d=${#FUNCNAME[@]} c=$BASH_COMMAND
        if [ "$NOTRACE" ]; then
                case $debug_skip in ''|$d) debug_skip=;; *) return;; esac
                eval "case \$c in $NOTRACE) debug_skip=\$d; return; esac"
        fi
        # before the 1st command in a function XXX
        case $c in $f|"$f "*) return;; esac
        printf >&2 "%*s(%s) %s\n" $((d * 2 - 4)) "" "$f" "$c"
}
(Of course, you can dispense with the strange format + indenting and make it completely set-x-like; you can also redirect it to another file instead of mixed with the stderr from commands.)
Then:
NOTRACE='"log "*'
shopt -s extdebug
trap debug DEBUG
log(){ log1 "$@"; }; log1(){ log2 "$@"; }
log2(){ log3 "$@"; }; log3(){ echo "$@"; }
foo(){ foo1 "$@"; }; foo1(){ foo2 "$@"; }
foo2(){ foo3 "$@"; }; foo3(){ echo "$@"; }
bar(){ case $# in 0) ;; *) echo "$1"; shift; bar "$@";; esac; }
foo 1 2 3
log 7 8 9
bar 1 2 3 4
will result in:
(main) foo 1 2 3
  (foo) foo1 "$@"
    (foo1) foo2 "$@"
      (foo2) foo3 "$@"
        (foo3) echo "$@"
1 2 3
7 8 9
(main) bar 1 2 3 4
  (bar) case $# in
  (bar) echo "$1"
1
  (bar) shift
    (bar) case $# in
    (bar) echo "$1"
2
    (bar) shift
      (bar) case $# in
      (bar) echo "$1"
3
      (bar) shift
        (bar) case $# in
        (bar) echo "$1"
4
        (bar) shift
          (bar) case $# in