Well, if i'd use smaller one:
1024 * 1024 * 2 = 2 mb
1024 * 1024 * 4 = 4 mb
1024 * 1024 * 4 = 4 mb
total it would be only 10 mbs. Now, i'll write editor that would connect terrains by 9, so it would be 90 mbs for large terrain 3000*3000. Now, i can load 2 of them and it would take 180 mbs, wich is not too many as you use 165.
If this would be too much, i can make "parts" smaller to 512 and they would eat 0.5 + 1 + 1 = 2.5 mb.
About physics: i dont know if Julio added fucntions for terrain so i can remove from terrains physic some parts, so looking like i need to reload all new terrain.
What about
, i think freezing of physic would help: i freeze all physic for a while, load new terrain and unfreeze it again(but looking like a little lag would take a place).
About float precision: well, looking like this may be a large system, that would move all objects to new places, so the center of world would be moved to new place.
About vegetation: i didnt look deeper in it, so i can say nothing about it for now.
About tons of poly: i'm thinking about loading second terrain in another thread and then just copy it instead of first one.