I'm working on updating a planning document. Whoever was in charge of cartography last time around used a great technique to identify and showcase focus areas (where to focus money and effort for maximum return on investment). I'm trying to use this same type of technique by interpreting and recreating the work-flow.

As you can see, it certainly tells more of the story than a standard flat-filled polygon especially when considering the landscape from a restoration perspective.
The focus area seems to be a terrain / colored hillshade -- could I recreate this with the national elevation dataset (NED) from USGS? Suggestions for a solid workflow to get me going would be great.