So, it's working as intended, will not get fixed because that's the way it is?
Why would it be impossible to better blend the low-res far textures with the hi-res near textures?
There is already a LoD system in place for the textures if you watch the pic closely: there's hi-res textures close by, then lower-res textures at medium distance followed by low-res textures in the far distance. The close and medium range textures blend well together, only the far ones don't.
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