Will topsoil rot? Hey fella, any current day rotting is long complete. I hear that rotting and settlement theory many times by so called geotechnical engineers, yet I would dare say they never saw a case of this happening and causing a problem. I don't hesitate to call for foundations on topsoil, provided that topsoil soil is compacted. This came about by watching contractors "get away with it" and it worked. Only I apply the usual rules for foundations on low organic soils, neglecting the color of the stuff.
Anyhow, topsoil run-off is common in settling in the bottoms of glacial lakes "lining the bottom" and many an excavation right near that lake can be dug and only local ground water needs handling.
At Madison, WI where ground water supplies the city wells, the groundwater table has been lowered by well pumping in town. You can dig right near those lakes and you are in the dry, below the lake level. The mud bottom forms a seal of sorts. The wells don't appear to affect lake levels.
So, to say it won't work is refusing to recognize that at times it does work.