Today I added heights from an image, diffuse lighting, and a texture splashed over the terrain. I'm doing everything through shaders, which are really cool. The normals could be better though. I'm only calculating them from the four vertices around each vertex, and it leads to some ugly effects when the light intensity is increased. I hope that by increasing the number of verts I use to 8 it should smooth out the normals a bit.
I'm not going to add too much more to this demo, since I didn't code it with any partitioning in mind I'm limited in the ammount of terrain I can render. I'm not going to bother trying to crowbar quadtrees into it. I might make a bigger demo after this one but I still have a bit more to put in, after getting the normals smoothed out. I want to add distance based fog to the vertex shader, and maybe one or two other bits.