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I think you are confused a little textures are what autogen uses so by cranking up auto gen it will use more detailed textures. The way I interput it is that there is a different texture for each stage so to speak. Now the type of textures can make a differance as well think of it this way.
It is like a painting the more detailed you want the more paint you will use autogen works the same way somewhat. I do not know what the specs are on the default terrain but if you use 3 or 10 meter mesh for textures than you will need more time to paint the picture so thus slowing down the computer. This is a simple approach and may not be exact but it is a general idea. 8)