Lontahv, I like what you've done so far in terms of the terrain; it has lost its initial sort of blobby look that terrain often has and is beginning to look like a real rock structure. I think you could make it look more interesting though, by checking out of the details of some real life shore features:
http://images.google.com/images?um=1&hl=en&safe=off&rls=RNWE%2CRNWE%3A2004-38%2CRNWE%3Aen&q=beach+cliff&btnG=Search+ImagesHope that makes your island look prettier than ever!
And one final question...
There doesn't really seem to be a good mechanism yet for getting water to the top of the waterfall; water doesn't naturally flow above sea level because that is like flowing uphill. (I know Relto does it, but that's a Yeesha pseudoscience Age and it doesn't count.
) I can see that you've tried to provide a source for the stream by snow-capping the mountain, but having perpetual snow cover at such a low altitude implies that the air is very cold around the island, and I didn't get that feeling when I looked at the almost tropical looking picture of the Age. Perhaps you might try some form of artificial pumping system to get the water to the top of the hill, like an aquaduct attached to a water pump or something?