Question about SM 4.0 and init.cfg

[serinity]

Background:
I recently had an issue where i saved the game and then restarted it about 1 hour later. Somehow in that save d.noclip=0 was set to =1 so i could fly around the entire level and through anything etc, etc.

Anyways; i looked up how to enable the console so i could turn off fly mode ( i thought that was the issue at first); no luck i wold just fall throught the entire map to my death. Next; i opened the console and typed "d.noclip=0" and i fell to the floor. All is good now. I have since re-disabled the console through init.cfg and everything is like it was before.

Question:

I have my shader model set to 4.0 and play with all the settings on/maxxed.

However, when i was looking through init.cfg i noticed that the 2nd to last line is about shader model. It Reads: r.shadermodel 3

1) Does this mean that even though i am setting the shader model to 4.0 through the in-game menu that is still at 3.0?

2) Is anybody else playing with SM 4.0 set and it shows "r.shadermodel 3" in their init.cfg? Maybe that is why there isnt much a difference that can be seen?

Are we sure this is working as intended?