Well, it looks too entangled for me at the first sight but I saved the web page for offline analysis and made it a priority task.
A special application is therefore needed to encode these 6 textures + 6 normal maps into a total of 8 RGBA images.
You mean like Photoshop?
About the static bitmaps approach:
What would the downside of using this be (besides manual loading)? slow performance?
And this sounds like the dumbest conclusion I could draw: it would allow virtually unlimited no. of textures, right?
And I almost forgot: tell me if there's a way to use this shader as it is now, with parallax or displacement? As a matter of fact, I got here starting precisely with the terrain parallax or displacement in mind. Please.