I'm not sure that there is anything wrong with the foam core. It just needs to be finished and hidden by ground cover. I would seal up all the gaps (including the ones between the street and the foam core) with masking tape. Then apply your ground-cover of choice and It will look great. One approach would be a skim coat of drywall compound or Durham's plaster.
I don't know what you are intending for this scene. I would consider doing something to soften the "pancake flat" look. At minimum, I would consider another irregularly-shaped layer or two of foam-core, again transitioned with masking tape. Even tiny differences in elevation add great interest to a landscape. If it is a rural area, I would sculpt some pink foam. I would use the opportunity to introduce a few subtle road cuts. Even if you want all the track to be flat, there are plenty of opportunities for vertical relief in other areas.