Your valid point is voxel, but a decent voxel plugin will already include (or should) an approriate set of materials - or even specific USFs to use and maybe custom material nodes on top.
On the other, maybe you skipped an important byte or 2.
They (automaterials) are pointless because you can trivially produce the paint (slope) maps in any GIS program, apply them as the paint layer, and avoid incurring any per pixel calculation costs.
You can do this near instaly with the very same heightmap that makes up your terrain.
For larger worlds, if you dedicate a day or so in testing how the engine works, and perhaps pull out some hair (like anything in engine?), you can actually set up batches of tiles to import including the material, and the slope maps for the paint layers (splat maps, etc).
You can get a 256km^2 map running in less than an hour or two, even on a shoddy 1080ti thatās as old as the crap with kite mentioned above.
(And more importantly, you could already do so even at the time of the demo inception - making the demo an example that shows you precisely what not to do in productionā¦)
Whats worse is that the so called auto materials are always performing the calculations, but unrealās landscape is not editable at runtime.
So, unlike Voxel, all that extra cost is just wasted overhead (in an engine that already has a rather compromised rendering pipeline cost!).
Ps: aside from brushify which supports direct paint anyway, I havent really seen any products out there that have any good grass/foliage - and even brushify isnt exactly a Game Ready set of assets. Still, not somthing Iād go actively seeking, as much like you I can make my own (with manicured lightmaps)ā¦