This took only 2 PF's (perlin), then some not so complicated tricks with slight warping and conditional blending.
The main trick is, like we're discussing now, how to apply this to a terrain in such a way that it looks nice regardless which direction the steep surface is facing.
This just on flat ground, for example, so getting it work on a vertical wall will probably be quite challenging.
I still have the feeling TG isn't fully 3D in this regard, but rather 2.5D at best.
The stretching and angle-dependent aspects we're discussing wouldn't happen when the noise is interpreted in full volumetric 3D, instead it shows clear resemblence to mapping a flat texture over an irregular surface, causing these issues.