I think the difference between the default Mars terrain and hi-res terrain is down to Mars oblateness.
Default elevation data is "elevation relative to Mars geoid(oblate)" and applied to perfectly spherical Mars. So Orbiter2016 default Mars is not oblate but the surface features have the correct elevation relative to Orbiter2016 Mars surface (spherical).
Hi-res elevation data is "elevation relative to a perfect sphere" and applied to perfectly spherical Mars. So Orbiter2016 hi-res Mars IS oblate but the surface features have the "wrong" elevation relative to Orbiter2016 Mars surface (spherical).
Actually its not "wrong" - its just that Orbiter altitude is always measured from the mean radius. And the atmosphere properties (and rendering) are relative to a perfect sphere, so they are out of whack with the hi-res elevation.
In a nutshell: the hi-res elevation is more correct (you get an oblate Mars) but the MFDs, atmosphere properties and rendering get thrown out of whack because they are all relative to a perfect sphere.
Evidence:
Code:
landing site latitude alt.error (Orbiter MFD/HUD readout) with Hi-Res elev.
Phoenix 68 15.61km
Viking2 48 9.98km
Viking1 23 4.02km
Insight 4 0.31km
I predict an error of 20km at the poles, and 0 at the equator.