Seems odd that distant hills/building are out of focus. Odder still is the stars and moons are sharp as tacks that rise and set behind said hills/building.
I guess the developers thought the 'out of focus' effect would add a feeling of depth, it don't. Take a look at old morrowind , oblivion or skyrim. you get a much better feeling of expanse in them. ESO uses fog and smoke to great effect here and would hope the developer would use those instead of a cheesy out of focus distance setting...
Oh god I said cheezy, Sheogorath post sure to follow;)