Ok, Eric will probably deliver an elaborate examination.
For starters: One can definedly make your material to work with pretesselated displacement and also make the machine consume ram.
A lot of ram. One can also get it to render quickly.
I could not get the .mxs to work as it always looked for an external .mxm although I had embedded it.
So I only had a look at the mxm. You should have posted this earlier, really...
There's people with far better expertise but one did not even have to look at the delicate stuff to find setup-errors.
The tiling was far too loose: 1.5 on 2*2m. The image detail you get per face at such a scale is quite neglectable,
especially as your source-map is 8bit only. Just scale the the map to 2m in Photoshop and have a look what you get.
On the other hand you want to raise a map from an ordinary flat carpet of maybe 5-6mm hight up to 2.5 cm.
A displacement offset of 0.1 also hardly makes sense.
The base-layer had a ND of 1 (=air), while the ND of the Spec-Layer (probably not even required Layer) with 3 is too high.
Using a Normalmap instead of bump would certainly help and maybe making the map smaller but then tiling more nicely.
The attached Screenshot is from Fire.
That's of course
far from any good looking but it at least captures the knot-structure of the original-map somewhat.
To get an outcome of a fat fluffy rug with large knots (which I believe you would like to create) one would have to use
another set of maps which captures large detail in great resolution.
I still have no explanation why your Ram does not increase when rendering, but as Eric I would expect that the displacement
does not get evaluated at all.
