Just to reignite an old thread, having a very similar issue here.
I have some grass that I'm trying to make frosty.
I have a layered material, the base is the grass, and layer 1 is the frost.
For the frost I want to add small displacement and a bit of translucency or SSS.
This doesn't work because the displacement is in layer 1.
How the frost appears is also affected by a falloff map.
If I apply the displacement to the base material, then I also have to duplicate the falloff so that the displacement works on the 'frosted' areas only.
This still doesn't solve the translucency/SSS issue
The other issue I have with this, is I was hoping to use the frosty setup for an entire scene. I'm not sure how practical this is when a lot of the base materials already have displacement?