My observation with foam scenery ( as opposed to hard shell) is that modelers rarely remove enough foam and the end result looks layered like, well, foam. I can see by your deep tiers already that it is going to be difficult to get smooth transitions. I would have used 2" foam and made all the layers go to the water's edge and cut back from there. Whatever you do, use plenty of joint compound to hide the seams. On my layout, I actually used cloth over the foam.
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