Random Questions about Open World Games in UE5.

I tried to make a 10x10 kilometer island, so I got some questions that came up.

As I don’t think 10x10 is such a huge map, and I read that UE5 promises worlds the size of the distance between Earth and the Asteroid Belt, I noticed there still is a blocky terrain even for small worlds. How can we manage that?

I imported a height map and set terrain resolution to max, but still, the island was small so I scaled it from 100 to 500. Hence, blocky terrain. How are we supposed to make large worlds?

Landscape merging.
In UE4, we could fuse landscapes together with world composition. Am I missing something? I think this can’t be done anymore.

Physics consistency.
Losing physics accuracy and other things as you move away from the center of the world is still an issue as it seems. How do other games like Assasin’s Creed and GTA handle that? They give the feeling that you can go anywhere anytime. What’s under the hood? I am not planning to attempt something a team of 200 people and 200 million dollars did, but it seems like some basic rules should apply even for a 10x10 kilometer map.

How do we get super crisp landscape resolution, merged terrains, and proper physics by keeping the player always near the center of the world? I guess this also involves the sky sphere too. If anyone has anything to add to this discussion I would be glad to read about it!