The grass, bush and plant plant view distance is really low and we can see that throughout the whole demo. We can see it at the very start of the demo, as several bushes pop-up like 30 meter in front of the player.
Most notable is the short view distance of grass in the tundra scene, where it just... looks plain awful. It's just as bad as it was in Oblivion. I think is what most people, including myself, are disappointed about.
What you mentioned was the view distance of dragons. In most games (including Oblivion), there are seperate view distances for different kinds of objects. Characters/creatures is often seperated as one view distance itself.
It's great that we can see dragons from so far away, and in my opinion I'd say it's also essential unless we want dragons to svck in the game.
In addition, we can also see a few big landscape pop-ups in the demo, kind of like in Oblivion.
We also have to consider that the real purpose and "special thing" of the "new" Creation engine is to "draw everything". It was because of this Bethesda didn't choose the id Tech 5 engine that Rage uses. We should therefore expect the draw distance to be huge for everything, yet we see pretty big flaws as I mentioned.
Other games have done this before on the console, and those games have even had an open world like Skyrim. A good example is Red Dead Redemption, which got much, much bigger view distance for everything (especially grass & bushes) in comparison to Skyrim.
Therefore, I'd say the "draw distance" is pretty disappointing in Skyrim, seeing that the real purpose and "special thing" of the Creation engine is to "draw everything".
Not disappointing in Skyrim AT ALL. Skyrim has about 450% the details RDR had. The Creation Engine IS pushing the consoles to the very limit, and it's noticable. I didn't think things like that we've seen could be implemented in the current generation of consoles.
Besides that, the grass's draw distance is obvious, the grass is now fully 3D, it's not 2D anymore, as stated by Todd Howard himself, it takes lots of resources from the hardware and couldn't be pushed further than that on the consoles. I'm sure that the PCs will have the option to draw the grass's view distance further, maybe even a lot further, don't know.
But once again, with the immense amount of details Skyrim has, they really were able to push the hardware to its limit.