All your points are correct. Maybe I didn’t phrase it clear enough.
What engine does is it defines the shading for a surface. But no one is considering if that surface is supposed to be simulating a flat smooth surface or is intended to be simulating a very rough and noisy surface like terrain, which is why there should be some differences between a flat plastic plane and a flat terrain plane. We can call it workarounds, tricks, hacks or whatever it is. What I’m saying is, what do we do about it? or what “can” we do? Suggestions about shadowing are quite Epic Games level and not something any of us would want to do on our own.