I think the fractals in TG2 are all smooth - which makes sense, as you usually don't want discontinuous surfaces.
If you want relatively hard edges, you can use a smooth step scalar after the power fractal:
<terragen_clip>
	<power_fractal_shader_v3
		name = "Fractal terrain 01"
		gui_use_node_pos = "1"
		gui_node_pos = "-880 1580 0"
		gui_group = "Terrain"
		enable = "1"
		input_node = ""
		gui_use_preview_patch_size = "0"
		gui_preview_patch_size = "1000 1000"
		seed = "54651"
		feature_scale = "5000"
		lead-in_scale = "25000"
		smallest_scale = "0.1"
		noise_octaves = "20"
		apply_high_colour = "1"
		high_colour = "1 1 1"
		apply_low_colour = "1"
		low_colour = "0 0 0"
		colour_contrast = "0.5"
		colour_offset = "0"
		colour_roughness = "5"
		clamp_high_colour = "1"
		clamp_low_colour = "1"
		apply_displacement = "0"
		displacement_direction = "1"
		displacement_amplitude = "2000"
		displacement_offset = "0"
		displacement_roughness = "0.875"
		displacement_spike_limit = "0.25"
		continue_spike_limit = "1"
		adjust_coastline = "0"
		coastline_altitude = "0"
		coastline_smoothing = "30"
		noise_flavour = "3"
		noise_variation = "2"
		variation_method = "2"
		buoyancy_from_variation = "0.5"
		clumping_of_variation = "0.25"
		noise_stretch_XYZ = "1 1 1"
		distort_by_normal = "0"
		distortion_by_normal = "5"
		lead-in_warp_effect = "1"
		lead-in_warp_amount = "0.75"
		less_warp_at_feature_scale = "1"
		allow_vertical_warp = "0"
		blend_by_shader = "0"
		blending_shader = ""
		fit_blendshader_to_this = "0"
		invert_blendshader = "0"
		>
	</power_fractal_shader_v3>
	<smooth_step_scalar
		name = "Smooth step scalar 01"
		gui_use_node_pos = "1"
		gui_node_pos = "-700 1460 0"
		gui_group = ""
		enable = "1"
		input_node = "Fractal terrain 01"
		gui_use_preview_patch_size = "0"
		gui_preview_patch_size = "1000 1000"
		step_start = "Constant scalar 01"
		step_end = "Add scalar 01"
		>
	</smooth_step_scalar>
	<constant_scalar
		name = "Constant scalar 01"
		gui_use_node_pos = "1"
		gui_node_pos = "-680 1580 0"
		gui_group = ""
		enable = "1"
		input_node = ""
		gui_use_preview_patch_size = "0"
		gui_preview_patch_size = "1000 1000"
		scalar = "0.7"
		>
	</constant_scalar>
	<constant_scalar
		name = "Constant scalar 01_1"
		gui_use_node_pos = "1"
		gui_node_pos = "-480 1580 0"
		gui_group = ""
		enable = "1"
		input_node = ""
		gui_use_preview_patch_size = "0"
		gui_preview_patch_size = "1000 1000"
		scalar = "0.001"
		>
	</constant_scalar>
	<add_scalar
		name = "Add scalar 01"
		gui_use_node_pos = "1"
		gui_node_pos = "-540 1520 0"
		gui_group = ""
		enable = "1"
		input_node = "Constant scalar 01"
		gui_use_preview_patch_size = "0"
		gui_preview_patch_size = "1000 1000"
		input_2 = "Constant scalar 01_1"
		>
	</add_scalar>
</terragen_clip>