Yes there will soon be a limit to the height and depth a player can terraform to based on the height of the surrounding tiles and the players skill.
However you do bring up and interesting point about not being able to clear a terraformed peak, I will bring it up to Jooky next time I am speaking to him and see what his opinion of it is.
EDIT:
Hopefully soon the system will be changed to require dirt to terraform up which will be gained from terraforming down in another location, thus the player will have to move off their pile to get more dirt and thus will only be able to create a pile as high as they can get back on top of.
Thanks.