Hrmm. Matching colour to displacement is quite difficult, as the displacement normal will touch different parts of colour space to get its value. I've had a dabble at doing waves, but you seem to have progressed much further than I have. One technique that does solve a few problems I've faced, is by generating a heightfield of the beach area I want waves to interact with, clamping a section of the terrain to be used as altitude below water level, to my water level. Then in the Heightfield node colour tab, I shade by height, then use the gradient produced to drive my wave functions on a seperate sphere or plane. This avoids the Get Altitude issue on two seperate objects. It also gives me a 'flat' gradient that works through altitude.
It's difficult to know how to solve your issue without looking at the node network.