Well just an idea, don't know how difficult it would be to make it...
If I got you right, your problem is not the infinte terrain generation, but the level_limit at 100000. I don't know what happens when a object reaches that limit (never got so far), but if it's a problem, why don't you move the level, instead of the player?
That means your player is fixed at the centre of the level and the landscape is moving undere his feet when he's moving. Then you could generate endless chains of terrain, and you'd never reach any limit. The difficulty is, that you need a completly different movement code, and everything else in the level than the player has to move.
Don't know whether this was useful for your project, I think this concept has already been used in some game like older flightsimulations.