Today is a day that I must say that I feel very proud of myself. Last year I couldn't really think about this kind of terrain generation and today I stand on top of it. Here is a screenshot of what it looks like.
So everything is going very nicely. I spent alot of time thinking about this and I will try some terrain texturing algorithms etc.. Right now I have to get my culling working, but the terrain is working nicely with the quadtree.