So you are not using the hugel as a growing bed, but more like bury the
wood and let it slow rot. Yes, it will work--two things, place it no where NEAR your house. That is a lot of tasty wood for termites and carpenter
ants to bury without building a bed over the top of it and introducing soil microbes to dine. Hydrangeas that are
water loving will of
course benefit from the moisture retention abilities of rotting wood, BUT, with that amount of wood, you will eventually have a long sinking hollow in the ground. I have a number of these spots on my property as I simply had
trees cut down years ago and buried the tops with soil. They are now sink holes that I am filling with debris and leaves and soil to bring to grade. This issue could be avoided if you do not bury the logs fully, cover them with green
yard waste, leaves and
compost and then topsoil in a mounding type preparation and then plant over that. Not sure the hydrangeas would take in the first few years because they need a lot of water.
As for the grass, never had any
experience with this and hugel, but I know white clover as a cover crop does well. Good luck!