Gozzy's Random Wilderness map generator is in an interesting tool. Better scaled for man-to-man tactical maps.
http://www.gozzys.com/article.php?cm_id=12 (free)

HexDraw 1.1, fits the scale and function of war game maps that I'm looking for. It's still a little too cartoony, but it's certainly usable.

http://www.hexdraw.com/ (Commercial, $45)

AutoRealm is an old school design, but it has a slew of features.

http://autorealm.sourceforge.net/index.php (free)

Hexographer does do tactical maps in addition to the larger campaign maps.

http://www.hexographer.com/ (Free online demo, Pro version is $24.95)

Well...

HeavyMetal Maps does everything right, but it's a licensed product so I wager that the maps it makes can not be used for commercial use.
http://www.heavymetalpro.com/image/DemoMap3.jpg (A large image)
http://www.heavymetalpro.com/HMMap_Features.htm (Commercial, $29 for a download if paid via PayPal, it goes up from there.)

http://pyromancers.com/dungeon-painter-online/ (free, has an option for outdoor maps and vegitation)

Some fractal map makers...

Donjon: Fractal World Generator
http://donjon.bin.sh/world/ (free, check out the alternate map projections)

Fractal Terrains 3 (a ProFantasy product)
http://www.profantasy.com/products/ft.asp (Commercial, $39.95)

Wilbur, one of favs because you can 'doodle' on the heightmaps.
http://www.ridgecrest.ca.us/~jslayton/software.html (free)

FracPlanet, also played with this one a lot in the past.
http://sourceforge.net/projects/fracplanet/ (free)

I love the 1st ed maps.

Those were fun to do the graphics for.

Is it possible to do any kind of edge blending in Hexographer?

You can paint background independent of hex edges, if that's what you mean.

Another fractal mapper that I forgot about...

World Machine 2, very capable fractal map maker, if you want to use the images generated for commercial products, you need to buy the standard edition. There is a also a basic/demo version.
http://world-machine.com/index.php (Comercial, $89)

Cool, not what I meant, but good to know there's a way to do it.
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TAZ

Played around with the Dundjinni demo and wow, it can do the job. Hex overlay, continuous terrain textures instead of tiles, layers for objects and plants. The big down side that I'm seeing is that they want to pay for additional content. To do modern battlefields, I could easily see the real price being: Dundjinni ($40) + Armor art ($12) + Campaign art ($15) + Street art ($15) or nearly $82 bucks! Sure, I can import my own programmer art, but that would be like mixing dirt into my morning coffee and expecting to get a premium brew.

http://www.dundjinni.com/default.asp (Commercial, $39.95 sort of...)

Oh, the license makes it totally unacceptable for commercial purposes with language that forces you to add their branding and links.

So close and yet too repulsive to even consider.
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TAZ