I wasn't aware this is unintended, so I've been using it in every fort of mine so far-- I do also make interior farming chambers, though, so I'm not a total cheat!
For the outdoor river channeling, I just create an entraceway into the side of the mountain 2 tiles deep, put a floodgate in the interior tile, and put the end of the channel on the exterior tile.
Then I dig from north of that to create a room where I will be farming in, and separate it from the rest of my fort with two doors (because I believe in precautions!). Have a dwarf link a lever to the floodgate, flip it and flood the room (with the doors set to Forbidden), and then flip it again for the weather to recede. Repeat in the spring!
Also, it is true that the channel will take in an arbitrarily large amount of water. When I was done with my most recent fort of 54 dwarves, a very sizable fort stretching far beyond the far side of the underground river, I jammed both of my safety doors open and removed the rest from my fort.
Not only did every single room flood, but so did the entirety of the wilderness. Every living thing that was not on the very tip of the map drowned.
EDIT: Actually it seems like everything was dead to begin with, now that I started the file back up again. Well, at least it got rid of my dwarves!
[ August 16, 2006: Message edited by: Oboro ]