I have a 1m bare-earth DEM, derived from LiDAR data, representing a terraced landscape. For the sake of any subsequent use of the DEM (e.g., least-cost path, cost surface analysis, and the like) I am wondering if it is sound/necessary to 'blur' the DEM in order to de-emphasize any possible 'noise' produced by the terrace fields (e.g., sharp changes in slope values due to the terrace walls). If the answer is yes, what type of approach is better: something like a low-pass filter (I am not familiar with it, and how it can be performed in ArcGIS 10.1) or should I go back to the LiDAR data and create a bare-earth DEM from scratch with a larger cell size?
One would wonder if a 1m resolution is the appropriate scale to be addressing you question. Bigger is not always better.
If the scale is too fine and is picking up undesirable detail, a reasonable approach would be to figure out what scale supports your question and generalize the dem accordingly. This can be done through a resampling, with a bilinear or cubic convolution, approach.