I get the conflict here, because it would probably have to be a case to case decision.
Mostly, one would want to add one displacement on top of the other (or mix it). Masks would be useful to determine where adding displacement should take place.
But in my example file, I would want the mask to kill the underlying displacement and just add displacement to the plastering (material 1).
So yeah, not easy to find the right way. Maybe the Layered shader could also get "modes" (like add, multiply ...) as additional options to stack materials? No idea exactly ;)
I'm seeing it from the POV of a man passing the magic forest, having caught a fairy and now just using his wishes, with no idea how the fairy should fulfil them ;)