Ok, so I've tested different settings on DayZ on Steam on PC.
I don't see the rendering issues on PC at all. It's working as expected.
You can select from minimum to extreme for Terrain Visibility ( how near or far the fog starts to obscure/hide things) and Object Visibility ( how near or far objects such as trees, buildings etc [ basically the world details ] start disappearing as you're looking at them in the distance ).
On minimum Terrain Visibility the fog starts at something like 200-300 metres. At extreme I can't see it at all.
On minimum Object Visibility the world details stop appearing at about 200-300 metres and then it's just blank terrain textures like you see when you reach the outskirts of maps. At extreme there are world details as far as the eye can see.
Point being that I can make the rendering distance and detail whatever I want, so it's not like what's currently happening on the console versions.
I don't know if this is a bug based on what I've seen. It appears more likely that graphical settings have been altered.
But there are PC players saying otherwise as well as console players saying that only some people are affected by this.
Personally, I think that BI reduced both Terrain Visibility and Object Visibility on all console versions.
I think Terrain went from High to Medium and Object went from High/Medium to Medium/Low.
For reference, all Terrain and Object settings go: Minimum>Poor>Low>Medium>High>Very High>Extreme.
Anyone else can chime in with their findings but this seems to be the simplest explanation:
BI reduced console graphics to improve performance.
The question is, will they revert it back?