One of the big benefits of earthworks is the tremendous de-compaction it does for the earth-body. I'm always amazed by the amazing soil that I dig up in locations that are growing nothing but scrubs. I'm thinking to myself how is such beautiful soil growing such an unproductive, thin cover. In most cases overgrazing, compaction, flattening, and dehydrating of the landscape lead to the growth that we see today. It's amazing the effect that loosening the soil can have, it's definitely one of the big advantages of doing earthworks. It sounds to me like you put down woody debris and then added soil? If this is correct then you didn't really de-compact the earth-body at all, you just added on top of it.
The water runoff issue is a very good point to bring up. There is a bit of a misunderstanding in the US about the role of the hugelculture bed. A hugelbed is only part of a system, the water harvesting is the more important part. To put things in perspective I didn't see a single hugelbed with Sepp at his new farm. Having a way for your hugelbed to get water naturally is the most important part. If the wood in the middle isn't being saturated by rain then it is not really a hugelkultur. This is why when Sepp came to Montana all of the hugelbeds were along a waterway, similar to the traditional chinampas. They are also great to use in areas where you don't have much room because they increase the growing surface area.
It's important that water harvesting is part of the design though. In appropriate climates a hugelbed will do just fine with the natural rainfall. In drier places it's important to have some serious water harvesting incorporated into your hugel. Water is the most important resource we have. In some climates this means on the surface, drier climates dug down, and even drier as part of a water retention system. Care for the water that you can. Feeding roofwater into a hugelbed sounds like a great way to me.
As your digging it's important to look at the layers and use the resources that you have wisely. It's always good to dig a test pit to see the soil profile during the planning stage. Then you really know what you want to do building the earthworks. If you don't know what the soil below is like (at least down 5') then your really just guessing with your design.
I think the word Sepp used for the wood in rainier climates is sour. Which as far as I can tell sometimes means acidic, sometimes anaerobic. I think it's more of an old farmer thing, knowing what good soil smells like and what sour soil smells like.
Here's a picture of a not ideal hugelbed.
In the high alpine desert climate that I'm in covering some wood with some earth isn't going to have the desired effect. In a climate like mine (average 15” precip 30” evaporation) water retention is the most important thing. But the property was sold without any water right. That is a crime against nature, but that's where we're at in the United States. Once it was decided that we couldn't do any water retention then we did the best we could.
This is a better picture of hugelculture from up the hill at Sepp's 2012 project. Notice all of the water surrounding the hugelbeds.