In blue a LOD2 original terrain, and in green the terrain generated using landscape tool. The PNG is linear, its a 4096x4096 pixels, meaning also 4096x4096 meters, and its pixel values, you can see here:
Why can i get this right? Even changing the scale in Unreal the terrain looks flattened in the extremes, looks like the engine uses a log or some sort of math behind the scale of the terrain.
How to have a 1:1 terrain with real world measures?