Mega/virtual texturing doesn't mean that everything must be hand painted.
After a quick skim this seems like a similar idea as mega texturing. The problem is that I can't have a large virtual texture because it would be too large to hand-paint/generate and store on disk. This is why I'm looking more at procedural splatting methods.
You just create the data in whatever way you want instead of just loading it off disk. (splatting, procedural textures, baking GI data just in time.. etc.)
Battlefield 3 used splatting with virtual texturing quite nicely.
Thanks for the reply. This is a great read and may be relevant to my project.