Added a handful of settings in 1.1.0 to adjust a few things involving hold long the items will live in the Trash Landfill, how many are consumed, and how much pollution is emitted when consuming an item.
As for turning the scrapped items into landfill, I see the point of the landfill to be a blackhole for items, not a way to make them useful again. There are other mods that handle recycling and the base game will have something similar once the expansion is added.