We started doing this two years ago and the results are excellent this year.
Our situation was that, we terraced a hill with 3foot x 10foot rows. We only had around 6 inches of soil on top and then it was all pure sand and granite as a base, anywhere from 3feet to 10feet down. It was very hard to grow in, and required constant fertilizing and watering.
I've dug out a couple of these terraces, one at a time, 3feet deep. The first foot or so was filled with logs and sticks placed in tight, and then I covered it all with composting material. The top couple inches were then covered with soil and finished
compost. I made sure to have at least 16inches of space from surface to log; I didn't want any issues with a pitchfork when aerating.
The ones that were made at least a year ago, were planted in this year. Everything is growing twice as large on those terraces, as opposed to our bad ones.
I know you see most people making hugelkultur mounds to take advantage of the north/south effect, but it definitely works to just dig a hole in the ground and fill it up. Composting and being patient for a year, meant we started out with fresh soil and there was a year for everything to balance.
Also, I've no idea about how the biodynamics would work out, or if this is pro/con growth for fungi or bacteria. We've just had good results with this.
Your idea sounded fine. You want the top to compost into soil over the year. But, the fungal growth and decomposition of the logs should hopefully take 10 years or more. The log sits there holding nutrients and moisture for what's above during dry spells, while it decays. I'd say the fungus gets there sooner or later.