That image could sooo easily be terragen, I'm not too convinced its not !!
This is quite easy really
As your using your own supplied DEM's you'll not need to worry about procedurally generated terrains. I would suggest using two or three
Surface Layers for your grassy moorland areas and another two for your rocky outcrops. Generally speaking grassy, moorland, vegetative surfaces will be more horizontally biased, whereas Rocky surfaces will be more vertical. Make sure your layer "
coverage" is set to about 0.5 so it dose not completely obscure your preceding layers. To apply colour to each shader use a
Power fractal shader but keep the surface layers colour but the default 50% gray. Within the power fractal use different scales, fractal seeds and noise flavors and keep your colours muted, not too bright or saturated. That should go a long way to achieving the results your after.
Hope this helps.
If you care to post a link to a sample DEM I'd be happy to put a few versions together for you, might even be a fun and educational project for the forum
By the way what is your PHD about?
Richard