Bug description:
NOT to be confused with rectangle heightmaps (DEMs)!
This seems to have been brought up in the public forums accidentally but some good points have been made there:
Ideally it would be great a suppress terrain displacement through polygons and/or projected meshes where needed. The latter already seems to be the case as reported here:
Ideally of course this approach may also give us an alternative for creating high resolution terrains based on DEMs. Alternative as in terms to the current XML based heightmaps. Just dreaming…