A dyniamic terrain tool like all game engines has would be a great addition to Rhino.
May I have this in V7 please? 
What does a dynamic terrain tool do? Or rather, what do you want it to do in Rhino?
It’s a live heightfield mesh with say 1024x1024 polygons where the heightfield image can be edited live by raising and lowering the z value by painting on the terrain.
In it’s simplest form it needs lighten and darken tools (to raise and lower the terrain), a plateu tool (just a single gray color with a height picker (image sampler)) and gradients going from one point to another.
In the future it would be nice with more advanced tools like texturing and road tools like Cryengine has, but for starters it is great with just the simple tools and a live link.
Here is an example from cryengines road tool.
Ok, heightmap editing with some useful tools, but integrated in the view, essentially showing as mesh editing, all with live updating. And texturing.
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And in the future no doubt you’ll want vegetation splatting, rock splatting (i.e. weight painting for particle systems), right?
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Oh yea, in the future it would be nice to have that.
But first thing first
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Didin’t @jeff write a standalone GeoFrac a while ago (like 15 years) that did something similar to this? I wonder if that might somehow find its way into Rhino 
If it’s possible, it sounds like a great idea for a plug-in.
It would also help us a lot if we had a better understanding of why you would want this tool in Rhino.
To model terrains, when working with either architecture or landscape architecture sketching up scenarios with tools like that is fast. But exporting the objects to say render platforms like Cinema4d, vue, or to realtime enignes like Unity or Unreal to do them is more tedious and difficult to export back to Rhino.
Here is an example of a custom road tool made for Cryengine. Roads are not the most important though.
I don’t have time to find a good video now, but can provide that later. Anyway here is one showing a use in Unreal:
And here is one of the reasons I still hope that OpenGL render view will evolve in the future:
Realtime is nice…
(Oh, and if you want to add a road track editor then the Unreal guys have a tutorial that might inspire you here:
https://www.youtube.com/watch?v=wR0fH6O9jD8)
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You can make wind-animated forest in Unreal Engine in one hour
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