No to plaster cloth
I tried using the cardboard web with cheese cloth stretched over the top of it (and hot glued in place). Then I went back and painted the cheese cloth with a very runny plaster mix. After 3 coats of plaster it was relatively stiff.
However, it sagged (as you noted) rather badly between the card board ribs. Made the mountain side look a bit like an anorexic super model with ribs clearly evident.
If you borrow from Joe Fugate's method and cover the cardboard lattice with masking tape you'll not get anywhere near the sags and the ribs can be on 2 or 3 inch centers. Speaking of ribs, don't feel like you have to have a perfectly rectangular mesh under the scenery. It's ok to have discontinuities in the 'fabric of space' (so to speak).
Here's what's under the hills next to upper bear creek on my layout.
1. Cardboard mesh and masking tape. If you look carefully you can see the cardboard is not always orthoganol. You can also see that I often use quite a mixture of techniques under my scenery - pink foam, cheese cloth scenery, and cardboard mesh topped with masking tape.
2. Starting with paint to seal the masking tape and give it some tooth so the plaster will adhere better.
3. Plaster/Vermiculite covering is started.
4. Airbrushed clouds. I sprayed artists white air brush acryllic (much cheaper than Polly Scale) on the plain blue sky for clouds. I added a drop or two of black and went back to touch up the under sides of the clouds to make 'em more 3d
5. Distant mountain, hills, and backdrop trees.
6. Coloring the fore ground hills with dirt paint - this is probably to dark but once covered with other scenic layers is ok.
7. Lets run a train through the newly roughed in hills!
8. I dusted the hills with a plaster and tempera powder mixture to give the ground some texture then carved rock faces in the cuts. Bridge installation over upper Bear Creek is also in progress.
I used a plaster and vermiculite mix to cover the masking tape. I used US Gypsum No.1 Casting Plaster (which has no shrinkage and is relatively stong). A 50lb bag will make a lot of scenery and costs very little. I spread it about 1/4" to 3/8" thick (although I apparently got it down to 1/8" in some places). The thickness of this makes the scenery shell tougher and if you have trees with metal mounting spikes it will hold the spikes securely.
I don't bother with a retardent so it won't set so quickly. I get about 10 minutes of working time out of a batch so I do about 1.5 sq ft at a time (rushing back to the cleanup bucket to clean the mixing tools and bowl). This is a place where a 2 man crew could really speed the work - one guy mixing and cleaning while the other spreads and smooths.
After putting on the plaster mix I wait 3 days for it to completely cure/set before slapping on a coat of cheap latex house paint in a dirt brown color.
The masking tape/plaster-vermiculite method works better for me than plaster cloth (except that it's messier).
If you really want to stick to the plaster cloth you might try supporting it with chicken wire bent to shape and hot glued and wired together. I did this for my 4x8 layout's mountain spine. It works but you can cut your self badly with loose ends of the chicken wire.
Hope this is helpful,
Charlie