@Vorick There was a AUM explaining how to do a infinite car game similar to your matrix placement, I don't recall the exact magazine number. But that's one way. By tweaking that you should be able to achieve close to what you want.
I've been thinking of a complete dynamic model based "world", but then you have to re-think many of the common scene predefined building with wdl or whatever to 3d gamestudio and make a sort of SQL and model based structure totally based on dynamic create and delete functionality of models to your world and only manageable by lite-c. This will give you unlimited "world" space but you have to make a world function to manage everything. For the moment I'm not sure A7 gamestudio will give this totally freedom without some quirks since the main thinking is based on scenes and levels with a predefined calculated wdl in mind.