I understand your point, what people probably use is 50m low graphics grass, the "real" grass is infinite draw distance and on high graphics.

This update is meant to stop that "exploit" that everybody uses.
Yes, it needs improvement, the body should not be a static colour, it should blend in more and maybe slightly show colour from their clothes instead of a black line around them.
But a new problem will arise, from the guy laying down perspective, he will use low grass graphics, so you must join servers with minimum forced server-side settings grass on medium-high.
Enemy POV from image above (high grass settings):

Bodies on roads, low grass and high grass:

Current defect:

Looks ugly, but you are not meant to skyline even if there's grass.
But you show examples where he does not skyline and yes it looks ugly:

Your last image pov shows a grass that is not too tall, check out the enemy pov:

Yea, needs tweaking.
Checkout 50m vs 300m grass distance,:

Overall, it is an improvement over the previous update, again it just needs tweaking.
Would this be better?

If you are not meant to see, why render at all? free fps boost ðĨīðĪŠ
my prediction is that it will be too hard to balance or program, and it will be discarded ð