I agree, I didn't like seeing the building popup either. Hopefully it can be adjusted. Maybe its a trick the engine uses to get more detail in on lower settings without sacrificing fps?
I swear there is older Igormir trailer footage, where in the last 30 seconds or so I think it shows a Spit flying over a city. There is little or no building popup, but there is some tree popup going on.
Start watching at around 3:00, and this looks much better than what was shown in that video of the guy flyign the su26.