Taking a break from my masking monologue to chat about someone else's masking...

The results you've got are looking very promising but it sounds like you've made it way more complicated than it should be... or at least to what I was originally thinking of... so bear with me while I pass on some stuff I've learnt from my own expermients.
The mask image... your mask image is good, don't get me wrong, but I personally prefer LZW compressed TIFF, mainly because it preserves clean blacks and whites which can be important when masking. Working on a 0.5m wide wall I wouldn't go below 4 pixels/m for the resolution of your mask. In the sample below I made the wall 3m high so that it wouldn't look so wide. As for total size... you could quite comfortably go up to 6000x6000 pixels without chewing up too many resources. The other change I made to the image was to drop the white level so that image was a bit sharper and there was a distinct band of white that would make up the primary displacement for the wall
OK enough of the techy stuff... on to the wall....
DisplacementIn the terrains section, add a displacement shader. Set the displacement to the height of the wall, direction: vertical only ... and connect the image map to the displacement function... Bingo, one wall!
Masking the wallTo cover the entire wall with a surface (or fake stones) you need a mask that covers the entire width of the wall at the base. If you just use the image map as it is, your surface will only appear to cover the top half. Add a colour adjust shader and connect the image map to the input. Set the white level to 0.1 .... Now you have a mask that covers the bulk of the wall. Use this to mask a surface or as a density shader for fake stones.
Masking parts of the wallBut why stop there? Your walls usually have a single row of rocks along the top at a different orientation (or shape) to the rest of the wall. Add another colour adjust shader and set the black level to 0.95 ... now you have a mask to define the top of the wall... cool huh? Add a second fake stones node and use this as the density shader and you now have a separate layer of rock along the top of the wall! Getting the right settings for the fake stones is another story

Just for the hell of it... add a subtract scalar node, feed the first colour adjust node to input 1 and the seond to input 2 .... now you have a mask for the sides of the wall, should you happen to need one.
Hi Ho Silver... away!!! ......

PS. I have some UK Terrains that might be handy...
http://www.path.unimelb.edu.au/~bernardk/terragen/terrains/ Scaffel Pike or Snowdon might have some suitable hills around them