This type of design is using vertexalpha, so for every part that has more than one texture (usually 2 blended textures), there are additional Polygons. AFAIK all Alphablending TerrainMEsh Editors use this method: ALE, TED, FLE...
There's a further method that will use Multitexturing, so you would use eg. Grass on the layer one, and eg. rocks on the layer two, where layer two is an alpha transparent texture, where the alpha channel defines if you see the grass that is "under" the rocks, or the rocks. But this method is not very practical unless you have a) a very small terrain, or B) a huge Rocks texture, because aou cannot tile the rocks texture without to tile it's alpha channel too (that may contain your paths etc.)
You may use more than 2 layers, but there are only 2 UV Coordinate Sets per surface, and if the cord doesn't support more than 2 textures then blitz will emulate this by creating additional Polygons.
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