I'm basically using simple terrain textures, which reduce to single color - a 1x1px mipmap level when texturing distant terrain. The textures are nothing much, without additional perturbation they would look pretty bland, see for example this old screen shot:
The textures applied on large areas show repeating patterns, but it gets remove by the modulation. The trick is indeed in the additional processing, in computing parallel fractal channels and using them for color modulation, normal perturbation etc.
You are right that it would be computationally expensive to perform it all at run time; a large part of it is thus being done in the time of generation, with the resulting textures and geometry being cached. Run-time shaders then perform only some light weight operations. Of course, this requires a clever cache management to keep the GPU memory consumption below some limits - and I'm still having some issues with that.