Most of the changes are playable depending on your setup. Stay away from ugrid. The instability it causes is only going to get worse as HD texture packs come out.
Ugrid is the one that makes the MOST difference though

I don't like seeing LOD textures, they are so ugly. Especially non animated water/waterfalls.
According to the NeoGaf guide using Ugrid is fine if you create a safe save? Is that not the case? Is there a way to increase the detail in the distance without using Ugrid..or just have to deal with it?
I did the >2 gig memory address tweak and raised the ugrid value from 5 to 9 in the ini file. Nice difference in visuals but my FPS tanked. Went from I think in the high 70's in the first shot to around 40~ish in the next. After the 2 comparison pics are a few misc shots taken with the tweaked ini.
Before
[img]http://i.imgur.com/1oEJk.jpg[/img]
After
[IMG]http://i.imgur.com/4XeRE.jpg[/IMG]
others
[IMG]http://i.imgur.com/2T4i0.jpg[/IMG]
[IMG]http://i.imgur.com/RkRu6.jpg[/IMG]
[IMG]http://i.imgur.com/V8Xlj.jpg[/IMG]
Actually, there is a difference in the shots you posted. Just have to look close..the detail in the trees and stuff is loading. It's more noticable if you look at distant buildings that aren't loading their full walls/parts or water that is static like a stream or waterfull.
Just based on your comparison though, look at the windmill. In one the actual rotating blades are not there. Usually anything animated, will not be animated outside the Ugrid. So, water, swaying, windmill. Also just look at the trees..the vanilla shot they are blank LOD textures, in the other you can see the snow on them and stuff. Also check out the farm areas. There are rocks in one shot, not the other, also in one the gardens are showing while not in the other. So yeah. You've just proven the POINT of LOD..is that it's hard to notice a difference if you are just playing the game..but if you really look deep..you can see.