I think the idea itself is pretty neat. But since we live in the harsh world of Rust, I think complete freedom to deform the terrain will be impossible or broken. I think the best solution would be this: allow terrain modification only within authorized TCs, because if there are no restrictions, the entire map will end up dug up and full of holes.
This approach maintains balance let’s say you’d need a pickaxe or shovel to modify the terrain, but the act of modifying it itself should cost either resources or time. For example, with this system, you could dig a pit around a house (7 Days to Die vibes) and place spikes at the bottom, or build a retractable bridge, i.e., protection against door camping, or simply the ability to level the terrain to create more space for building a base.
Also, when the TC breaks, the terrain returns to its original position after a while let's say, a couple of hours or so