There's many more examples and tutorials on 3D displacement on the Digieffects and Mettle websites. The only other plug-in in memory that could do this was Cognicon TILT, built to use the defunct Quickdraw 3D from Apple (Red Giant's Sean Safreed was the Apple product manager). Here's an intro to Freeform displacement:
Freeform 3D Displacer - Overview from digieffects on Vimeo.
By the way, special pricing ends tomorrow Friday the 14th 12:00 pm E.S.T. on the FreeForm Enhancement Packs - Mylenium Edition. That's 10 HD Project Files for $79 ; regular price is $179.
Update: Chris Bobitis added a free flag project using Freeform -- just add some texture or pre-displacement to the flag if you think it has too much starch.