He didn't even post a full screenshot, but a cropped image that supposed to show just draw distance imperfections. I played ES4: Obilivion on my 21 inch CRT and 26'inch 1280x720 HDTV and limited draw distance wasnt as noticeable when playing on such old displays. I noticed pop-in, but that was to be expected given the scale of this game.
PS3 version
And modded PC version. Draw distance was increased and pop-in was reduced.
PC version without any mods:
There was a huge gap between Morrowind and Oblivion, although I was always impressed by the water rendering in Morrowind (one of the first games that used pixel shaders 1.0).
Jade Empire. I thought it was the best looking RPG back in 2005, but compared to Oblivion it looked like a joke.
What made Obilivion look amazing in 2006:
-Huge map without draw distance fog in front of you.
-Beautiful vistas with dense vegetation swaying on the wind. Back then grass rendering was very expensive, yet alone moving grass.
-HDR lighting solution throughout the game.
-Textures utilized the latest shader 3.0 technology including normal maps, specular maps, and parallax maps. Some games already used these impressive texture effects (Doom 3, Splinter Cell 3), but Oblivion was a sandbox game.
Beyond3D 3.0
www.beyond3d.com