Objects are treated fundamentally differently from terrain at this time. Objects are, in general, more limited. You cannot populate other objects on them, as Richard noted; you cannot apply significant displacement to them in general, except for very dense messages they tend to "explode" or fragment, which I believe is due to lack of subdivision in the object rendering process; finally, you cannot apply Heightfield operators to objects, e.g. erosion. You can however use normal procedural texturing, which could give the impression of erosion; but to be clear, it is not a simulated erosion process.
- Oshyan