I believe there is a way to get continuous elevation values wherever your cursor is on the DEM (Just like coordinates). Does anyone know how to get those values to appear?
I'm not sure if this is possible from the DEM....but here is a thought. Convert the DEM to a generalize polygon layer/feature-class, with the elevation as a field. I'm not sure how to do this as a continues view, but could be a pop-up maybe?