How much accuracy could we can expect from producing DEM from SAR using InSAR techniques as compare to available SRTM 1ArcSec data? Specifically in view of the available Sentinel-1 datasets?
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First of all, SRTM and SAR should not be opposed, because SRTM was derived by interferometry (C-Band and 60 meter long baseline). Sentinel-1 is also C-Band and a relatively small baseline (50 m RMS orbital tube).
The big difference is that SRTM used a mast on the shuttle for systematic interferometry, while you lose a lot of coherence between two consecutive Sentinel-1 acquisitions (12 days with one satellite, 6 days with Sentinel-1a and Sentinel-1 B), therefore it is more difficult to extract DEM. The advantage of Sentinel-1 is however the length of its time series.