Below is a short list of stuff that turns me away from strawbale, in no particular order.
When I say "expensive" I mean not just in terms of money but also in terms of time and/or headache, the environment, etc. as applicable:
1. The labor (as you said). Labor always seems to me like one of those things that is consistently a lot more expensive than expected.
2. I worry about rot in strawbale, especially if it's built by someone without a lot of experience doing exactly the kind of construction called for (in your case, both Earthships & strawbale).
3. Straw bale makes sense in certain places, less sense in others. Which kind of place are you in? Depending on your location, it might be a lot less expensive to use a different material that is more readily available locally.
4. Strawbale walls are a significant gobbler of square footage unless the house's footprint is expanded accordingly; expanding the footprint will make the foundation (and most everything else) more expensive, especially it's made with expensive ingredients.
And then for the retaining wall at the rear...I need a wall material to replace the tires as I want to experiment with an alternative to tires. But I don't think adobe or cob or rammed earth are suitable for applications that might get wet
Maybe it would help to look at the berm as a compromise?
If you install everything that needs to be there and do it absolutely right, then you get thermal mass without water intrusion, possibly even without humidity or mold problems, and your thermal mass helps regulate the temperature so you don't have to use a lot of energy to heat the house.
But in exchange you probably can't afford to be too experimental or picky with the retaining wall. I don't like the tires either, personally; I think I remember seeing that earthbags are a popular alternative but they usually end up being filled in with a lot of concrete in the end anyway (in fact, tires do too). So I would probably build mine out of concrete block or something a bit more "proven".
This all kind of leads up to the question, why are you berming at all? Might it be simpler not to, and find some other way to get a bunch of thermal mass? You could also do all four walls strawbale that way and avoid the joint issue.