The resolution of a baseboard is for the entire baseboard so to use HD terrain anywhere on a baseboard the entire baseboard has to be converted to HD resolution. The feature I talk about above applies only to the radius of the brush on an HD resolution baseboard. Therefore the 16 texture limit applies to the entire HD terrain baseboard. In practice, the SD and HD buttons are only changing the size of the brush tool, not the resolution of the baseboard. They used confusing labeling for this feature by using SD and HD. Perhaps a better name would have Minimum Brush Radius with the buttons labels 4m and .125m.
Peter is correct. These button have no function in TRS22 PE as it doesn't support editing in HD terrain mode. TRS22 does have HD compatatibility mode that allows a user to load an HD route into TRS22 Driver and the route as per N3V will be converted to a apparent resolution of ~4m. However, if you save the route it saves as a 5m grid route.
In truth, I don't know of a time when I would use these buttons. I can just click on the brush radius box, type a new number and hit enter faster than opening the edit route dialog box, clicking the button of choice and then clicking OK.