It's best to do displacement, especially large-scale displacement, in the Terrain area because it ends with a Compute Terrain that computes the terrain normals and makes subsequent texturing more accurate to the terrain shapes. Smaller-scale displacement, e.g. 1 meter or something, is OK in the Shaders area, sometimes it's more convenient this way, but it's best to aim for doing most displacement before that Compute Terrain.
- Oshyan