DEMs are very practical but you need to chop them up in TransDEM. The NED is now a seamless server and this is a big part of the problem. A couple of years ago one could download a tiny slice, square, or nearly anything of any size, but then they upgraded to the new servers and now we have giant files. Each download is no less than 70MB it seems. I'm currently downloading one that is about 540 MB and then I'll cut what I want out of it in TransDEM. It's worth noting that TD now supports historical topographic maps and imports the information directly, via a third-party package, from the Adobe GEOPDF files located up on the NEGS map server. This is extremely helpful as the maps are placed directly, in place, on top of the underlying DEM with no fudging needed. This is done using UTM coordinate info that's embedded in the PDF and from the DEM.
Thank you for the information on the old TIGER maps. These weren't available for a short time, perhaps they have been updated. Keep in mind that they are not as accurate as the topographic images downloaded from the NGS.
The alternative to hand creating terrain is to use the old HOG program. I can't recall where this comes from, but this program will generate terrain from DEMs downloaded and manipulated in MicroDEM. This is an older method that does work, albeit, it's not as accurate since the DEM information is at a much lower resolution.
John