I just copied the default material from engine content and added tessellation.
Tessellation seems to still be glitched in landscapes though, it doesn’t perform well even with 0 tessellation but assuming this gets fixed it should solve the vertex density problem.
You are probably right about collision didn’t thought of that :o but the terrain collision is not fully accurate anyway, it’s probably usable in most cases.
Edit:
Keep in mind however that with a carefully crafted (or blurred) heightmap you can avoid all of these sharp edges that you see here… it’s not usually a problem.
If you need to blur the heightmap too much then you can probably add back some of the detail by generating a normal map of the un-blured heightmap.