hey,
we finished our house last year and dealt with this same issue, almost with the same slope (but ours faces west rather than east). and we chose to do the step downs as you're thinking. You can see our whole blog at www.ideamountain.com which covers building from start to finish.
Our main concern was the retaining wall on the uphill side - if we went down all the way to have one flat floor, we'd have to go deep into the ground to build an appropriately sturdy retaining wall. By only going down 5 feet, we didn't have to go massive with the retaining wall footing.
(another part of our design includes leaving a 'hallway' between the house and the retaining wall. Not sure it was necessary, but we were concerned with the possibility of water/force of gravity affecting that retaining wall in the long term, so we didn't want it to be the bedroom wall that weeped.)
another part of our 'step down' design allowed for a loft over the kitchen without having 14 foot high ceilings in the whole house. (that is, the west side is taller than the east, which adds a very nice dynamic to the design)
Looking back on it, I can't decide entirely if it was the best solution or not. The challenges include:
-when we're old, we'll still have to go up and down the stairs to the bathroom.
-putting in the radiant tubing for the
hot water heating was a pain, and might create more trouble for us down the line
-my stair design included
wood runners on top of the mini stone retaining walls that are the stairs. that was really hard to do (in part because of the wood I chose) and the connection between the wood and the flor and wall plaster continues to be a bit of a design flaw. (remember that if you make multi-levels of cob floor, you'll have to have some sort of edge at the stairs... a cob edge will crumble)
-I'm a bit concerned about having a cob house that has much bigger - heavier- walls on one side than the other... and am wondering if there might be some settling differences over time. I have seen a few cracks in my plaster, but as of now, they're just the kind that should be hidden when we whitewash again.
the positives:
-the above mentioned retaining wall issue
-the easier digging at the time (which is NOT a good
enough reason to do it)
-the sense of flow and design that comes from the multi-levels. this is actually a big deal.
How's that for an
answer?
Tys