There are several Terrain editors in the work, and some are available. There is one main problem with terrains, you cannot use any size. If you want to have an endless world, you need some kind of Occlusion system, that will only load/create and display the region you are currently walking trough.
It's a nice Idea to use GPS Data to produce heightmaps. Some people from blitzforum.de used to play around with their GPS Data recorders and Blitz, and they had a working converter/interface. I think t isn't that hard if you study the GPS Data format. There will be some infos about the Map position and some infos about eg. Ground height. So it could be translated directly to a heightmap.
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