The problem with UGF available today is air is typically used to move the water. This is a very inefficient way to more water. End result is the flow through the filter is limited. However some people have used water pumps instead of air stones. That generates higher flows through the filter and material is less likely to build up in the substrate.
An alternative UGF design is the reverse flow UGF (or RFUGF) in this design the equipment is the same but water is pumped down under the substrate. The water then moves up through the substrate potentially lifting organic material out of the substrate where it can then be removed with a weekly vacuum.
Air stone powered under gravel filters for small tanks are available but the lower flow limits there effectiveness. As a result they are not very popular. Water pump powered UGF and RFUGF filters for larger tanks are not available from manufactures. SO if you want a water pump UGF you have to make it yourself.
Gravel can and has been used in conventional filter. The bacteria grow on the gravel instead of a filter sponge or some other manufacture filter meterial. Given the size and volume of the substrate and undergravel filter can process ammonia, nitrates,and organics faster than a typical aquarium filter.
And if the power should go out for any length of time, the gravel bed can turn anaerobic very quickly, since the detritus is within the gravel along with the aerobic bacteria which can become suffocated. This can easily poison fish.
It is important to mention that Anaerobic activity can also occur in in conventional aquarium substrates. Anaerobic substrates is not necessarily bad since anaerobic bacteria can process nitrates while the high oxygen level in most aquariums prevent nitrate processing by bacteria. Any thank, regardless of filter type, with a lot of organics can have issues with water quality if power goes out for an extended period of time. Your typical short power outage should not cause any issues.
http://www.firsttankguide.net/ugfcontroversy.php
I think a early ideal setup is a pump powered UGF with a small external container containing the pump, a particle screen to remove large organic particles and the water heater. If wanted phosphate, nitrate absorbers carbon, and UV sterilizers could be located with the pump. This would move a lot of stuff and wires out of the aquarium. This would also eliminate some of the issues related to the traditional UGF