If you are using ADE, then I would suggest you create a polygon around the airport area, and set it to airport background, flatten exclude autogen.
As for the elevation issue, FSX airports are flat. By default, you cannot make them slope to match existing ground. As you know, they simply drop off to the existing ground with steep cliffs. Best bet is to try to match the airport elevation as close to the existing ground elevation as possible. This is an unfortunate limitation to FSX scenery and requires substantially more advanced skill to work around. ADE by itself is a great tool, but it is constrained by the limitations in FSX.