I just checked with a different version (actually, two different versions) of Pound, and now its working fine. So, its clearly a Pound issue, will notify the same in their mailing list.
Hiawatha log files don't have anything in them when Pound (apparently) tries to make a connection to Hiawatha, but in Pound I have the following:
daemon.warn: Sep 2 10:02:06 pound: (b7aeeb90) connect_nb: error after getsockopt: Connection refused
daemon.warn: Sep 2 10:02:06 pound: (b7aeeb90) backend 127.0.0.1:5080 connect: Connection refused
daemon.notice: Sep 2 10:02:06 pound: (b7aeeb90) BackEnd 127.0.0.1:5080 dead (killed)
daemon.notice: Sep 2 10:02:06 pound: (b7aeeb90) e503 no back-end "GET / HTTP/1.1" from 192.168.1.114
daemon.notice: Sep 2 10:02:06 pound: (b7aeeb90) e503 no back-end "GET / HTTP/1.1" from 192.168.1.114
daemon.notice: Sep 2 10:02:08 pound: (b7aeeb90) e503 no back-end "GET / HTTP/1.1" from 192.168.1.114