http://www.youtube.com/watch?v=B3A6-MHunso
go to 6:24
Well, that's what I meant. The fog effect on the mountains looks cool, no question, but you can see the outlines of everything in the distance (see 6:34). So it doesn't behave like real fog where you are engulfed by fog and can't see anything beyond a certain point. Like on http://www.uh.edu/engines/fog9.jpg picture. In Skyrim you would still see the outlines of whatever is behind the trees. Mountains, other trees etc, no matter how far away they are.