I like for every house to have the nice green maxis grass and it sucks that it doesn't show in neighborhood view anymore.
I think you would like this default grass replacement
http://forums.modthesims2.com/showthread.php?t=171302I've been using it for months now and I love it, it makes my whole hood look so much better.
I took it out recently for awhile because I was trying to trim my custom stuff down and figured it wouldn't be needed when Seasons comes out but my hood looks so drab without it that I put it back in this morning *laughs*
I haven't really noticed anything with terrain paints and the neighborhood view. I don't use them all that often but I don't think I have this bug (or graphics issue) ...if I think of it I will double-check when I play again.