Oh, it can. But two layers of 1/4" closed cell foam on top of plywood would not be very comfortable. I've used the stuff to line my carbon fiber shell, and it's barely enough to prevent bruising. EIGHT or more layers might be marginally OK as a seat pad, but who wants to bond that many layers together in the hopes they'll work?
So, you're recommending 1/4" closed cell foam instead of upholstery foam to save money, then you're recommending leather instead of lycra? Wow! Leather is great for an easy chair, but not for a recumbent seat. The early Cobra seats on TourEasys were covered with leather. The lycra covers were not only cheaper but also more comfortable. With a yard of lycra and a few feet of elastic from JoAnn's, anybody who has access to a sewing machine can make several lycra covers. If you don't like lycra, you can always make them out of weatherproof upholstery fabric, or buy one
here.
The OP didn't ask, but I'll add here that when your mesh back wears out, you can replace it using Pet-Pruf screening material, which is available at big-box hardware stores. Again, all you need is access to a sewing machine. It is not particularly hard to make these things yourself if price is a concern.