You can see it's WIP in several areas, but it's VERY promising IMHO.
Of course some colors look to bright, the textures too blury, especially at some distance, but if you take a look at picture 0116, you'll notice there's barely any atmosphere rendered at all beyond the clouds. You can see the sharp horizon in between the clouds.
Once haze is enabled and set up correctly, it will probably blend colors and textures nicely.
IMHO it's even more obvious looking at the Spitfire and the Bf110. It's simply some layers switched on and off. While the Bf110 shows the reflections and bumpmaps, the Spitfire has switched those off and shows how detailed the textures are.
Long story short: The screenshots are not what the game will look like, but what makes the differences.
That's also true for the trees - it doesn't mean they will stay like that, but rather like: "hey, we don't use layered textures to show forests, but individual trees!"
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