My last, relevant, post was:
Procedural Textures? However, I have made this thread since that one was just an idea thread, because I have put the idea to work.
I made a procedural texture generator in Unity, but because of some difficulties dealing with the engine, it didn't come out as phenomenal as I had hoped. I only came around to making one material type, which was sand that looks more like dry dirt. Essentially, the texture is generated when the application starts, and is applied to a material which is applied to an object. The material also has a normal map. The only major downside to this was the fact that I had to restart the application for the normal maps to generate, because of some goofy bouncing around with Unity, files, texture imports, and blah.
It seemed relatively practical. It took about 8 seconds to generate one 4K texture, and afterwards didn't hinder performance, because it was generating on initialization. I had some issues along the way involving Unity, but in the end it turned out to nice.
Finalized:
I would be interested to see this be applied in Outerra, for generating organic textures, and texture artists can worry more about texturing more complex objects instead of terrain.