Unreal's terain is a textured height-field, just like every other large scale terrain out there. The texturing options available in Unreal (out of the box) are as good or better than anything on the market. If unreal's terrain sucks, it's only because the people designing it haven't done what you would consider a good job.
Give Picasso a 64 pack of crayons (make sure they're asbestos free, cause I'm betting he'd eat them) and he'll give you something cool. Give the same box to Marweas and he'll give you stick figures and then spend two hours trying to convince you of the angst that his figures portray. The point is that the tool (unreal/crayons) is just that, a tool. The beauty comes from somebody who knows how to use the tool (which is what women say also).
