With it on, which was always the case before this setting was added,
vanilla content and poorly-made mods will look acceptable, but well-made
mods will have alpha-tested meshes appear to grow and potentially gain a
weird outline as they get further away.
With it off, which replicates the 0.46 behaviour, well-made mods will
look really good, but vanilla content and poorly-made mods will have
alpha-tested meshes shrink as they get further away.
It's been bugging me that this was forced on since 0.47 released, and
I'd hoped to figure out a solution for automatic detection at some point
before 0.48 branched off, but I didn't, so now this is what we're
getting to have Tamriel Rebuilt look right.