I'm not talking about the merits and demerits of Reshade, I'm trying to discuss the default settings for the game, and why they look foggy and muddy, and why other games do as well.
Realism: Old banners are weather worn and faded, wooden sidings are old and tired losing texture, focal points (a sense of sense of blurred distance when focussed on something close).
In addition to that - render distance due to cpu/graphic card limitations. Loading a partial blur at a distance still gives the appearance of distance without the need to fully render in the texture.
Edit: Typos
The real world doesn't look like this. It doesn't look like there's a grey fog over everything, with the notable exception of times when there is actually grey fog over everything, but that's not what this is. There's no reason for ESO and other games to look like this. Disapprove of my examples all you want, that's not realism, it's just bad default settings.






OP, I am on console and there is no such thing as reshader... Every time I look at PC gameplay on YouTube, first thing I notice is the absence of fog. I HATE FOG. Luckily, recently consoles got their view distance improved, but still... Getting rid of the fog completely would do wonders.
That "opaqueness" is annoying. Often I find reshaders exaggerate in contrast, but your point stands - that "grayness" ruins the visuals of the game otherwise nice, and blacks feel almost inexistent. If I want to have true black in game I need to make everything super dark (and it ends up like in the screenshots where people pointed out details get lost) - it feels unbalanced.
Definitely visuals as a whole have huge margins of improvement, especially in base game zones.