LoH works on both Cyclone Strike and WoL, but at a reduced rate. They have low "proc coefficients", 1/8th and 1/9th respectively. That means they only return 1/8th or 1/9th of your LoH for each enemy affected. On the other hand, most of the Spirit generators for Monks have relatively high proc rates and return a bunch of LoH, Fists of Thunder:Thunderclap being actually having an effective proc rate over 100%....
LS works on every single form of damage you do and scales linearly with damage. It's generally "useful" in Inferno starting around 30K DPS and can completely surpass LoH in performance somewhere around 50K to 100K DPS, depending on your build (and all those pesky proc coefficients on every skill.)
Neither LoH or LS is ever a bad thing to have and I pretty much always try and get both on every Monk. LS always feels mostly useless prior to Inferno, though.
You don't in any way need Tempest Rush on your Monk, but it's conventional wisdom to have some sort of "escape skill" on your HC Monk. Usually Temprest rush and Dashing Strike fit the bill. If I was making a small change to your build, I'd try including Dashing Strike:Quicksilver in place of either WoL or Cyclone Strike. Basically, any time something "winds up" for a big attack (Mallet lords, bulls pawing at the ground before a charge) you can use DS and avoid the attack, often by just targetting the guy about to hit you and ending up behind him. You can escape Jailer and even dodge frost explosions if you time it exactly right. Give it a shot - It's my favorite skill in the game by far.
Sweeping Wind seems very effective, but I can't stand the sound it makes once it has three charges.
You don't need to use it when leveling pre-Inferno if you don't like it. I usually don't use it and rely mainly on WoL When you make it to Inferno and stack some Crit Chance, you should give the Cyclone rune a change and see if you enjoy putting tons of little tornadoes on the screen.
One more question: Why does Cyclone Strike not always damage enemies that are within its range? Often it will pull in a mob, but won't damage that mob.
Nobody knows. :)
Actually there's a limit to 8 enemies that will be affected, but often it seems to affect less than that. I heard it's somewhat better in RoS
And speaking of RoS... everything I just said is pretty much no longer true when RoS comes out. LS is going away, Life per Spirit Spent gets a huge buff and becomes a major source of sustain, Fist of Thunder attacks more slowly, proc coeffcicients get changed all over the place, and Dashing Strike is being nerfed into this weird charged based mechanic, effectively being on a cool down.