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I've been thinking about something like this for an N scale layout on a 4x3ft board. I don't plan to run anything too large in terms of trains, mostly small and medium tanks engines with few wagons seeing as I have a few 1st radius turns there.
My main concern is the grey section, I plan to have it sitting on an embankment so that the reversing loop at the bottom there can snake under it via a bridge, I'm just wondering if I'm going to have enough room for a suitably gentle incline.
If I understand right the lower route will also need to be isolated and have it's own separate power.