@Phitt: Not sure about the view distance thing in Skyrim. Bethesda have kept saying that the view distance is sooo big in Skyrim. That you can see everything. So far, it's minimal compared to what was able to be seen in Oblivion/FO3. I'm confused.
This one looks big as well: http://cdnstatic.gamesas.com/akqacms/files/tes/screenshots/CompositeMountain_wLegal.jpg
... but I doubt it's as big as half the game world, which was able to be seen in Oblivion. There are no trees in it either, so we can't actually be sure how big or small it is.
They announced the draw distance is waaay longer than Oblivion's. Meaning we can actually see more to the distance than we used to in Oblivion. It was one of the things the press was excited about in that two hour demo demonstration Todd gave them.
I might be mistaken, but I think draw distance might refer to how close you have to be to an object for it to appear on the screen. That doesn't necessarily refer to how far you can see the landscape. More like how far away can you see that person or that barrel. They may very well have had to sacrifice view distance in order to achieve a better draw distance.
As weird as it may sound, but I hope Mitheledh is right. If I could see all of Skyrim from a mountain and if Skyrim is the same size as Oblivion then it would make the world feel small. It would also make sense. Optimizing the engine works wonders, but Xbox hardware is Xbox hardware. I guess it would be hard to have a detail like on hlvr's screenshot with an unlimited draw distance.
@DarkDeliverians: Sorry, but that's not true. Distant land is
the performance killer. While it may have less detail there are so many things to render that it easily makes up for the lack of detail. The loaded area in Oblivion for example is 25 cells (and you can't even have all of it at once on the screen). The distant land you could see in a single render frame were around (educated guess) 2000 cells with clear weather (weather didn't make a difference regarding performance since less view distance didn't mean less to render, but easier to imagine). Just look at RAEVWD. You need a hell of a lot of stuff in the loaded area to get the same performance decrease this mod causes.
EDIT: That's also why I think the distant land shown can't be praised enough. While I usually express my concerns on this forum I think it's amazing how it looks. Especially on Xbox hardware.