Thanks for the replies. Indeed, objects popping up out of nowhere would be annoying, but I must confess that I find making an object transparent as a substitute seems like a rather odd solution. In fact, I have never seen such a solution implemented in any game before, including F4 and FS2004. Objects fade into and out of view, but at no point do they actually become "see through".
I don't quite understand how making the object semi-transparent would actually result in fewer calculations, and thus result in greater FPS. The object still exists, and has to be rendered, but now the CPU and GPU have to alter it's transparency and render it accordingly. To me, this would result in more intense CPU/GPU usage. I think using a haze method to hide distant objects from view, (and rendering) as used by F4 and FS2004 looks realistic, occurs in nature, and in my mind at least, is probably much more efficient for the CPU/GPU to process. I guess what bothers me the most is that a solid object becoming invisible is such an impossible and unnatural occurence, that I would find it hard to ignore while actually playing the game. I will probably go ahead and buy 1.02 and 1.1 anyways, but I sure hope ED changes the way distant objects become viewable.