oudst,
I work in residential subdivision design and use Terramodel to perform things like contour drawing off DTM, road points generation and sewer design. Our transportation department used to use it, before TDOT decreed that Microstation be used for all their projects. The transportation guys use much more of Terramodel's functionality than we do in residential.
I don't edit input files and I don't know what MX software is.
We use Terramodel version 9.6, which is a long way from the most recent version. I can't say that I have many complaints about Terramodel, and even if I could highlight one, the chance is it's been fixed in later versions.
For subdivision design, I would consider Terramodel superior to AutoCAD, but I've hardly used AutoCAD in my career, and that was both long ago (2000) and not for residential subdivision design. AutoCAD has plenty of bolt-on software and can probably match Terramodel's functionality. I've never used Microstation in anger, so I can't comment on its value, but apparently it's the draughting tool of choice for TDOT.
Francesca