What would be the best way to make cliffs or other very steep/near vertical terrain in the world editor? It seems the only way to get something very steep requires ridiculous height, best I can do at smaller heights is about 60 degree slopes.

Can it be done using the height-map or does it need to be done with models?

On a related note, is it possible to do overhanging sections in the world editor?

Overhanging sections cannot be done yet, since it requires an other method of terrain editing (will be there in a future SDK-update, but not soon, since it is located somewhere at the bottom of the to-do list :( ).

Very steep slopes can be made with heightmaps (and importing them ofcource).

An other way to make a steep cliff would be to:
1. First heighten the terrain (first option)
2. Use flatten on the top of that highest point, while having decreased the softness.

No models needed for this

EDIT: I want to have at least 1 sad smiley on the forums, not only happy ones

You'll need an engine with voxel (3d) terrain to make good quality vertical cliffs with overhangs (or caves) etc.

You can get near-vertical with height-map (2d terrain) but not quite vertical. Also most engines do not give good texturing results on steep near-vertical height-map terrain (as the meshes are stretched out on the near-vertical slopes). I've not tried that with Esenthel yet so maybe its not such an issue here.

If it's one-of, then using models may be a good workaround. But if it's all over, then not so elegant.

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You'll need an engine with voxel (3d) terrain to make good quality vertical cliffs with overhangs (or caves) etc.

You can get near-vertical with height-map (2d terrain) but not quite vertical. Also most engines do not give good texturing results on steep near-vertical height-map terrain (as the meshes are stretched out on the near-vertical slopes). I've not tried that with Esenthel yet so maybe its not such an issue here.

If it's one-of, then using models may be a good workaround. But if it's all over, then it's not so elegant a solution.

you can just insert cliffs as separate models, most games do that

Could just make the cliffs as a mesh and add it that way.