All good ideas, but consider these points:
1. Terrain resolution is one-half mile... meaning each polygon is a half-mile long. Unless you're up for driving an hour or more, that's not very many polys to put between yourself and the enemy.
2. The CM Terrain Team has experimented a little with this... see the example pic attached below.
The contour lines here work out to be roughly 500 feet of elevation, and it's pretty tight as it is.
There is no way a vehicle is going to climb 500 feet in any reasonable amount of time or distance. A contour separation that would actually be useful would have so many lines so close together, it would be an almost solid-black map
Still, they are all great ideas. It could be a great option someday.
ps. cynikal... the TE is pretty easy once you've done it a couple of times. Feel free to ask about anything.