Yeah, I'm looking into different ways to "smooth" it out and I will definitely check out how others (apps/tools) approach this. I'm not a big fan of how it works now but it's easy to implement so it would be great if I could find a way to "improve" it.
Node graph is just for fun, or communication, it might help others. It's much less intimidating when you have node grouping--which is something we don't have in C4DOctane.
Btw. you'll definitely get better results than any of those apps by just applying displacement on a plane using your height map and either rendering a normal pass or baking it.
Kind of like this:
Cheers
Milan