I should have stated this in the original post, but this would be something that would come well after all other aspects of TG2 are dialed in, such as water transparency, SSS, most bugs fixed, etc.
For procedural foliage, it shouldn't take any longer to render than would instanced foliage, and in fact, may not take long at all as it may not require instancing at all. Fake stones aren't instanced are they? And the benefits would be smaller file sizes, less memory required (I would think), as well as truly diversified foliage. Of course instanced foliage import would still be an option.
I keep seeing TGTP images featuring foliage (including my own), where the populations end up looking like a foliage nursery. To work around this, I've had to use 3 or more different models of a foliage type instanced through 3 separate populations with different placement parameters, and sizes. This works well, but in order to get true diversity, I think the procedural method is the way to go. This would especially work well for high-density populations, like grass, weeds, bushes, and plants.