I've heard similar things about people have their graphics degrade. What console and do you clear the cache?
Xbox, it has nothing to do with my console. There was a slight " down grade " of some textures and the draw distance after patch 1.2 or 1.3, I'm not the only Xbox player on the boards that has taken notice to this either. There where several threads stated about it once the patches where released, if you compare a non-patched Skyrim to a patched Skyrim you can really see the difference. It was shortly after Beth fixed the backwards flying dragon bug.