First of all, CAPS LOCK CAN BE TURNED OFF.
Second, this is done on purpose, to allow the consoles to run it.
The popping is due to the low draw distance, which is also so that PS3 and 360 don't explode while playing.
If you don't pay attention, it won't bother you too much. I have no problem seeing this on my 360.
Also, I don't want to turn this thread into a console war, so I'll just add that I own both systems, and love them both.