Here's another setup. Displacement by color can be controlled by the smooth step, either a constant color/scalar or a PF, where color gives the max displacement, flattening near top. You can also play with the color offset in the preceding PF, less white=less peaks. I used a simple shape for the landform, but that can be replaced by an image map.
The second surface shader offset displaces the whole seafloor down, the displacement tab up again from the PF. If you raise that above the downward offset, islands will appear. You can see where it's just below sea level, foam appears (from the displ to scalar line).