but.. its just a demo so far. an old demo at that. they could have turned the draw distance down to make sure it went smooth.
Of course it's just a demo, but the game has been in development for like 4,5 years. The engine is what is made first, and therefore how things are rendered.
They don't suddenly realize and think "Oh crap... yeah the rendering distance for grass and bushes and such wasn't that great at all. We better rewrite that part of the engine!"
It's true draw distance could be turned down, but if that's what it takes for the game to run smooth, then I'd still say it's bad in big, red text. Other games on consoles manage to render many times longer grass and bush distance, and still run smooth.
Also, if you were a game developer and wanted to show off your new engine, which the real purpose of and "special thing" is to draw everything, would you turn down the draw distance settings so much that things are rendered like 30-50 meters in front of the player? I certainly wouldn't.