Technically any shader before the "planet node", yes, but most significant displacement should be done in the Terrain group, *before* the Compute Terrain node and the Shaders group. In that case you would plug all the terrain-definining shaders before the Compute Terrain into this input.
Keep in mind that this will not save color/texture info, only height, and it also doesn't handle overhangs. The pixel dimensions will control detail. 2000x2000 is a good average resolution I'd say, although it depends on what use you are putting it to.
- Oshyan