So it seems "r_skipglare 1" really makes the game look better, ALOT better!
It removes all the awful overdone post-processing as has been explained by others.

Just look at the differences. The blurrier milk-washed looking ones are the default Rage graphics. The sharper cleaner looking ones are with "r_skipglare 1" enabled:
http://img831.imageshack.us/img831/1271/demo1xd.jpg
http://img38.imageshack.us/img38/9830/demo2tt.jpg
It also makes Dead City look much more grittier and grim, which I love.
Not just that, but it also reveals nice far-away texture detail that normally looks like white blurr.

So yeah, from what I've seen alot of places look much better with this tweak, I don't know why they saturated alot of the post processing so much