I think you're referring to the fact that some renderers are especially fast at rendering many overlapping alpha-mapped planes, while for others it's just faster to use high-res geometry without alphas? I haven't really done speed comparisons in Terragen, but I know there's a substantial overhead every time it traces a new ray and calls shaders to determine opacity, which it has to do more times per pixel when there are many overlapping transparent surfaces. So in Terragen it's very likely that high-res geometry will render faster than low-poly alpha-mapped objects (assuming you don't go over your physical RAM limit). I'd be interested in other opinions from users though.
Regarding 8-bit alpha vs. 1-bit stencil, currently Terragen turns all 8-bit opacity maps into a 1-bit yes/no transparency (after interpolating the pixels), but in future it will probably use the full range.
Matt