I think that they dropped this scheme to try and create a more 'tailored' terrain, whereby textures used were built from scratch do that they worked at all levels of altitude (with terrain textures based on photos/satellite images, you can get that horrible 2-D effect down low.) Having said that, it's only really the images of the trees which give this 2-D impression, and if the dark outlines of the trees were covered by trees or other foliage, I'd imagine it would work just like the current 'carpet' in CloD.
Also, I think as earlier Dev updates showed, the photo-type of textures just looked wrong without correct shaders or bumping.
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