If this plugin you are using is keeping the mesh quads then i suppose this plugin doesn't change any topology of the plane you have, so i would guess increasing the number of subdivision of the displacement (or the mesh if you have to) will get better results. I think the original displacement that is in maya would leave you with better resultsI'm using the displaceD plugin so I can elevate the terrain, see it in the view port and keep it at quads rather then having to triangulate it. Are you creating the displacement through the mentalray approximation editor? Do you mind sharing how you have gone about it as this is one thing that I still don't quite get in Maya.
The height map I created in world machine. Getting the correct scale has also proven to be a bit of a pain. It is supposed to be 1k square terrain but now looking at the details within your render in not sure they match that scale.
Still not sure on the best way of texturing terrain, each time I have tried it has turned out differently. Is this topic covered in the 'Realistic Outdoor Environments' tutorials?