Why don't you try it yourself, on before mentioned sims that do feature it.
Based from the current situation where you have a hard time seeing anything at all without zooming in (try using GAU8 without a zoom for example) even minor scaling is welcome improvement. Current situation is unrealistic as we have it now, even for spotting ground objects.
In short, I can not disagree more. Fire up old IL2 and see how well you can spot a dot at a distance. The distance is even adjustable in the settings for online play. And there are none of the problems you are worried here for closer view like the one you posted - in other words, LODs for close and at medium distance objects are not affected.
This has to be a joke. Trading off brakes for the sake of zooming in is a clear evidence how bad DCS is in this area.
What we have now in DCS is being nearsighted when in FOV view, and farsighted when zoomed without any kind of benefit when in normal FOV except for viewing gauges.