Okay so it looks like in displacement I have to use “Normal Displacement” instead of ‘2D Displacement’
Judging from the descriptions I thought I had to use the latter:
Normal Displacement – Takes the original surface geometry and subdivides its triangles into smaller sub-triangles which are then displaced.
2D Displacement – Bases the displacement on a texture map that is known in advance. The displaced surface is rendered as a warped height-field based on that texture map. The actual raytracing of the displaced surface is done in texture space, and the result is mapped back into 3D space. The advantage of this method is that it preserves all the details in the displacement map. However, it requires that the object has valid UV coordinates. You cannot use this method for 3D procedural textures or other textures that use object or world coordinates.
This change with a couple of lights to create more shadows got me this:
