The update scheme you describe should be perfectly possible at least on desktop machines. For mobiles I don’t make promises, you’ll have to test. One StaticModel component + its node shouldn’t take more than about 0,5 KB of memory. Urho doesn’t support “linked” duplicate components at runtime, but the per-instance attributes are fairly lightweight (model reference, material reference, flags/variables like cast shadows and viewmask). If you want to optimize, doing things like SetModel() and SetMaterial() manually to the new component is probably faster than using the Clone() function, which goes through the generic attribute mechanism.
Another way is to instantiate and remove rectangular world “tiles” as the player moves around, though this can create some framerate hitching.
Heavy use of transparent images can be a blend/fillrate killer on mobiles, so again, you’ll need to test what is too much for your target hardware.