From proximity 2D to Terrain

Hi guys I would realy appreciate some help on the following problem!

I am having a cloud of points that i am feeding in a proximity compoment. What I want is to create a terrain that its highest point will be from the line with the smaller length , the highest from the largest and a gradient in between. So far I have managed to make my 2d point cloud to a 3d point cloud where "z" is in regard of the length. Any ideas of how to make it into a smooth mesh? Tried the "Delaunay Mesh" but it seems very rough (probably because some point have very close x,y but very different z, maybe something with contours?)

Any ideas, out of the box are very welcomed, remember I only have the points.