I want to do this with procedurally generated landscapes from the noise plugin. The 3d model idea might work but I dont have much experience with that, but I want it to have a retro look like star control 2/ur'quan masters.
Heres a random clip I pulled up showing what I want
http://youtu.be/l0nOux0mAiI
This game is quite old and Im almost sure they didnt use a 3d model. Im curious how they did it.