With quad, you mean a real quad consisting of two polygons? If yes, then this will be the absolute killer for performance...don't do this. Try to create chunks of geometry as large as possible to try to minimize state changes, i.e. use one set of textures on as many polygons as possible. If you want to use different colored textures for each quad for whatever reason, merge them into one larger texture instead.
Yes, I meant a quad consisting of two triangles. I need to generate terrain which has both a realistic degree of variety and also smooth transitions. I've been adapting my procedural terrain algorithm (which I had previously been using for a voxel-based program), in which you just have a plain grid with an elevation and a unique color for each voxel, hence smooth transitions from one voxel to the next. I thought I could just treat each grid point as a quad (or a vertex on a quad) and then add 3D plants, trees, etc, as needed. But this requires varying the color slightly from one quad to the next.
So you're saying it's actually better for performance to use Terrain Demo's method of having two meshes and blending them, thereby duplicating each quad? If so, how do I blend more than three textures, or tint them to produce smooth transitions?