The TerrainToolkit is a good tool to create your own imaginary terrain. 1 - What you would do if you want to use real digital terrain elevation model (DEM) with its latitude, longitude and height data in your Unity 3D application? There are many sources on internet that large, high resolution terrain data can be obtained. For example, you can download large FSX (Microsoft Flight Simulator X) terrain data from here. 2 - Is there any tool (free or commercial) that loads large terrain data (10s or 100s megabytes) into Unity 3D? -Kaya
I'd suggest using a program to work with DEMs which can save RAW files, which you can then load into terrain toolkit. I think Terragen can do it.