This is what midpoint displacement looks like as a heightmap: http://imgur.com/ksETpO0,7gykFEV#0 This is what realistic terrain looks like (this is based on real-world heightmap data): http://imgur.com/ksETpO0,7gykFEV#1
That said, midpoint displacement, perlin/simplex noise, etc are good for modeling terrain at a less macroscopic scale and are plenty sufficient for the use of most games.