When you say terraced do you mean with retaining walls, or level steps of soil with slopes between them?

If your terracing is soil, consider how steep the slopes are. In the photo below the grass on the right of the drive could be mowed with a riding lawn mower. The grass on the left side should only be mowed with a push mower, or perhaps a weed whacker.

Vermont Cottage · More Info

Even a short steep slope may not mow well. Steep areas are better planted with plants that do not need mowing: ground cover conifers or other evergreen perennials.

Long Island Landscape Contractor: Erosion Control, Sod Installation, Stone wall · More Info

The grid you linked to sounds good for creating a walkway, but an entire area of rock reflects a lot of heat. If you do use rock in the grid, crushed rock gravel locks together and stays put better when walked on, while rounded gravel can get inadvertently kicked out of place. Crushed rock can have dust mixed with it, or be washed.

If the erosion you mentioned is from a gutter or some large impervious area, you may need a short pipe and/or drain to move the water under your walkway/lawn to a lower area of larger coarse rocks.