Back in 2004, I was playing around with Blitz3D and terrain generation. I read that exact same tutorial and its really good. I managed to create a terrain tool with which I could generate random terrain that looked decent.



It can create both regular color map, and textured based on up to 8 textures which get drawn accoding to map height and blended into each other. It also has a feature for creating a shadow map based on sun angle and location which could be drawn onto the map, so its static but with Blitz3D it was what many did because it wasn't fast enough for lots of dynamically create shadows.
I can highly recommend that tutorial to anyone remotely interested in terrain generation.
@rdc, really nice looking considering how fast you have pieced that generator together. It took me a long time I remember to get anything decent looking, but as with everything else, just keep at it, and it will improve over time.