Had a quick test. Default grass shows distinct differences due to shader settings.
Full shader settings, reasonable coverage, no fade.
Medium shader settings, less coverage no fade.
Lowest settings, worse coverage but fades nicely.
I think the fade effect should be present in all settings, and not to the detriment of the draw distance we have already, as that is already fairly low as it is. Flat floors tend to look okay but hills always have grass growing up them as you approach
Never looks good to me.
Other grass types differ in how they react, really as mentioned previously (not in this post), the grass needs a good sorting through.
SPECS: Q6600 CPU. Nvidia 660GTX. 8 Gig Memory. Win 7.