I would have to say, that my co worker found something cool. I have been playing around with the settings for it and noticed a couple things.
First of all if you use a plane as your object, you can have the option to picking either the 2d mapping (landscape) or 3d mapping. 2d mapping (landscape) made the angles more sharper, and turned what look like hills to be higher and more defined. 3d mapping more it look a little silly though, as they looked like stretched out patches that were somewhat flattened.
Secondly, I noticed that the plane didn’t make parts of it vanish like the sphere object that my co worker was showing me. I made another plane and changed the color to blue to pretend to be quick “water” texture.
This was my set up, I placed a plane and picked it to be 20 by 20 in polygon count. After applying the VRayDisplacementMod onto it, I set the Amount to 2.0, left the Shift at 0.0, and clicked Water level with it being set to .01 as well. I then tried to render it out as both 2d mapping and 3d mapping to see what how it was different.