Nice. Never underestimate the usefulness of polystyrene when it comes to making terrain. I learned that from the Terrain Tutor. You can make even little houses or buildings with that stuff too when cut right and maybe even adding some of wood or those crooked staff terrain texture paper pieces.
Yes; I have been using it in a variety of things. And by and large it is free! Making it a cheap way to bulk out builds. Plus, if you use a sharp knife and cut slowly in sweeping cuts, you can get it to cut cleanly without having little polystyrene balls popping out everywhere.