Yes.
I have terraforming in my own mod (Crazy Spatz, over in the modpacks forum, although it's part of a content mod that includes all sorts of other future things). Effectively, your worker unit creates a temporary Improvement, the game checks for the creation of that sort of Improvement, and when it finds it it alters the terrain of the tile and removes the improvement. Voila, terraformed terrain.
The biggest problem is that there's no easy-to-use "map refresh" function, so changing a terrain type won't change the graphics until you reload the game, at which point it fixes it to the new types. This also applies to creating or destroying hills; you can do it, but it won't have a graphical effect until the next time your game is loaded. (The reason for this is that the game needs to know which three hexes border on each intersection point, to know what sort of transition is needed between tiles.)
The one change you CAN do with immediate graphical effect is create temporary Features, such as forests or jungles. Although, there's some headaches involved with that as well, so it might not actually work as well as it first appeared to.