One of downsides of the current LOD system is the pretty obvious pop in that happens when a LOD switches, while this is somewhat hard to counter one way of smoothing this transition is through a dithering effect. I'm not sure of the performance penalty such an effect would have or how difficult it would be to implement but it would help with smoothing out that transition. Of course it would be best if this is something that could be enabled or disabled per object in the editor as well as having a toggle in the graphics setting. One somewhat hacky way of implementing it I could think of is by having a duplicate of the current lod that uses a material similar to the one used for objects in the ground scatter system, when a lod switches you unload the actual lod and load the the scatter material lod with its fade distance set to some fraction of the current lod and next lod pixel size. you also would load in the next load so that the scatter lod version fades into the next lod which should create a pretty decent lod dithering effect, of course having to temporarily increase the amount of polygons being rendered isn't ideal but for most objects this shouldn't be too much of an issue and if it is the option to toggle the effect would solve that. Having a bunch of duplicate materials per object probably isn't ideal either so maybe some sort of material property that can be enabled and disabled for this transition would be better.
