You think C4 blurs? oh man, you should see the old flag. It's near impossible to get razor sharp image quality and kill all aliasing at the same time.
But, you have the choices for LoD (As you mentioned though, some sharpening also works. Which is what I would prefer. Because LoD changes often induce shimmering/moire), auto LoD on. And with ALOD off, you can set it manually or leave it to 0
Comparison between C4 and the old flag
http://www.abload.de/img/timealt0ou6.png
http://www.abload.de/img/timeneu8ofj.png
It's also somewhat of a necessity in Saber Interactive's Engine. Not even crazy downsampling can tackle the large amounts of shader and texture aliasing. SGSSAA+downsampling = amazing though.
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