A possible brute force solution would be to force the lods higher, at the cost of some FPS (not 100% sure if this trick works in 2.5.x anymore, worth a try though)
Open graphics.lua (notepad++ advised) and adjust your value according to how you have your visibility set, so for extreme visibility you adjust:
line 220: lodMult = 1.0; to something like lodMult = 2.0;
or even more, play around and see if it helps.
There needs to be an solution from ED though as I agree, some of the draw distances are way too short.