I can't think of an easy way to do what you're suggesting because the Power Fractal (or other displacing shader) would have to be applied to something the same shape as the tree (and hence an object), and then you run into the same issue of Raytrace vs. Displacement. However you can at least increase the quality of non-raytraced objects, in a population make sure that the rendering quality is set to high (in the population node itself), or if it's a single object, you just increase Detail. You could consider rendering an image of just this one tree in the scene, with all else turned off (besides atmosphere and lighting), at high detail, then render everything else, minus this tree, with raytracing enabled, and composite them together. But that's a lot of work to get a slightly different result.
Another option which may not be available to you but is worth considering would be to add actual geometry displacement to the trunk in another application (Zbrush for example), then reimport the model into TG. It can handle pretty high resolution geometry, so even though the tree would end up several million polygons, it should be OK if you have a decent amount of memory and aren't using them in a population.
- Oshyan