The vraydisplacement modifiers water level , doesn’t work the way Art48, seem to believe it does, it isn’t tracing a path around the extruded object, at the water level, it is just clipping the displaced geometry, plus it is going to be far harder to control, even if you used it, since vraydisplacement is not visible in the viewport. Also the way displacement works, to get a really nice extruded object, from a bitmap (alpha image), you need it to be extremely high-res black and white (not grey).
Example, say you draw path in Illustrator, say it’s a star shape, you import that into Max and extrude it, it has nice straight. vertical sides, just what you need… Now lets say you use vraydsplacement mod. with a so called black and white image, if it is a true black and white image, it will have very jagged edges and the extruded sides of the object, would look awful (unless they are perfectly straight in x or y and al angles are 90degrees), if however, it has anti aliased edges, then not only would they look awful, they would not be straight either, since the black part of the image, would be at the height set, then as it goes from black to white,the displacement would slope off, until it reached the white part of the image, where it would be at the ground or water level.
Simple answer is, there is no easy way to do it. Either you trace the bitmap image, either manually or automatically (with some cleanup). Some things take time, especially if you want good results. AND as I say, asking Chaos Group to implement such a feature, is basically asking them to do something, many others, including Adobe (Illustrator) and those responsible for the two scripts/plugins already mentioned. You want them to read in a black and white image, auto-trace it and then extrude said spline(s) to create a 3D object.. and get better results than you get in Illustrator
Using PIXEL images, black and white, greyscale or colour whatever and tracing them, to generate vector paths, without having to do anything but click a few buttons, will never be as good as hand tracing. Same as drawing a mask with the paintbrush in Photoshop, will never be as accurate as using the pen tool..
Have used both Photoshop and even Max to trace bitmaps myself and yes it takes time, but it’s the most accurate way I know of.