For one it'd be impossible to do in TorqueScript. It'd have to be an external program. Custom textures also aren't possible. You'd either have to use a print or make a new face for every single pixel of a different color. And what do you mean by terrain? The terrain datablock was removed. If you mean terrain like bricks then it probably wouldn't be very feasible and would take a ton of math.
THis would be incredibly complicated to make and I doubt that it will be made because of that.