I made a simple procedural terrain generator for the blender game engine. A python script generates random numbers and sets the position of random vertices of a selected mesh to the random number.
You need some more flat areas and smaller hills. I would procedurally generate the textures.Like snow and mountain textures etc.I would prodedurally generate the trees.Add that with dynamic terrain loading and it would be nicer.I could submit a blend or link for dynamic terrain loading.