I would just like to say that i think the terraforming system is great.
I was skeptical at first, but after spending 2 days coming to terms with the level tool, i can easily bring large sections to a perfect level.
There is a bit of an art to this, which is the best bit. There is skill involved like (there is supposed to be) in PvP.
i encourage you to keep the level tool as is, and not make it so easy to use than anyone can learn it in 5 min.
one think i believe is missing is a way to create a gradual even slope. perhaps a 'flatten terrain' tool could be introduced, to smooth out the jagged steps created by leveling a slope.
The 'Clear terrain' tool also appears to be broken, in that it will not remove road placed on otherwise unremarkable surfaces.
A 'sew grass' tool would also be great, to reintroduce the dirt/grass texture origionally present, or even just a 'grass' texture that can be applied like road.