If I recall silnarm has, a long time back, played with splatting the whole map into a single massive texture. If on the other hand you are still using tile textures, you can get massive speedups from putting all those tiles into a texture atlas so you can draw the map without texture state changes and from a small number of mega-tri-strips using degenerate triangles to skip. (Always assume that an atlas will spill onto additional 'pages' so you're dealing with a small number of textures, rather than strictly a single texture).
Does GAE do this in someway? I recall seeing some image before that seemed to have all the tiles in one image file. Can't seem to find it now though, and no clue if that's even really related or anything.
'tr2' (Terrain Renderer 2, very creative name...) puts all the splatted textures on a single big texture (if possible, two or more may be needed depending on max texture dimensions and map size).
The image you saw was probably called 'terrain_tex.png' and was an output of said texture for testing/debugging, this is no longer saved.
I could imagine a G3DHack that took all the frames and merged the meshes and stripified it, and then you used a vertex shader to interpolate them.
I can also imagine such a thing... one day someone might even do it
I've had a quick play with gDEBugger and found a possible performance improvement. Instead of a calling glGetUniformLocation each time a uniform is set for each time a unit is rendered I've set it to store the handles on loading a shader. Using gDEBugger it shows that glGetUniformLocation is called 767 times and 11.99% of calls in a single frame step. After the changes it's called a max of 13 times. I've only tried with basic shader so if something is messed up, let me know.
Nice one, don't be shy with further investigating... rendering with shaders is not even remotely optimal atm.
Now that the shaders are working correctly (and are mostly consistent with the fixed pipe code) it is probably time to split the Renderer up, many current state changes are completely useless with shaders, and are just wasting time, but are needed for the fixed pipe code and therefor also for the ability to switch between them easily.
The other big thing that immediately comes to mind is getting rid of all the conditionals in shaders. A tricky job perhaps, but what we need is what the guy at
http://www.3dkingdoms.com/ calls a template shader system. Basically we have no complete shader source files, just snippets that do different things and are spliced together to make a final shader (or many shaders), so there wouldn't be one shader supporting up to x lights, but rather one shader for one light, one for two lights, etc, etc, and one for x lights, with no if statements.