Oshyan, I ended up using your method of exporting a portion of the heightfield. Looks like it might work.
But you are also right that bringing in the entire heightfield at a high resolution really isn't practical. I can edit the individual "river heightfields" in L3DT to create more realistic surrounding terrain, but the hurdle now becomes how to blend the borders. I see there's a "border blending" setting, but whenever I increase it, it increases the overall height of the secondary heightfield, causing me to add an adjust vertical. I have to keep changing the value to correct it every time I increase the border setting. Is this normal, or is there something amiss in the secondary heightfield?
Thought of another way to blend the heightfields. I'll just export the river terrain to include a few hundred meters of the surrounding terrain, and blend it manually in L3DT. Much simpler.