I will tell you what I see. I see now invisible rocks on the ground which drop shadows. How do you do invisible something? You just negate perpendicular vector to point inside bounding box, so textures will be "inside" and that makes them culled = invisible.
Now, was 3d designer so drank and made plenty of assets with wrong normal vector? No. I think those "assets" are generated. And generator has a bug, which flips vector. But this means it is not hand made asset, nor it is copy-paste.
I am pretty sure that were this the case, you would see the textures drawn on the inside of the rocks, as usual when you have inward-facing normals -- I highly doubt they self-occlude in the manner you propose. I'd look elsewhere, for reasons they fail to render.
I also think we see enough repeat scatter rocks, from a not particularly large assortment, which quickly makes them only too familiar, and not seldom placed right next to one another, with identical alignment, that we can rule out them being procedurally generated.
...not enough avail VRAM...
That should limit one's machine's ability to deliver high resolution terrain patches, yes. I often have to sit around and wait for more detailed LODs to finish generating, but other than that, my 11GiB 1080Ti seems to suffice to hold a decent amount of patches of decently high-detail terrain, and the terrain feature bitmaps involved in its generation.
A healthy amount of supersampling should also make the game generate and use higher LODs for the higher render resolution - too bad we don't have the performance to do that
and get tolerable frame rates; I am pumping the. render resolution
in VR (...because surfaces look terrible at x1.0...), and man do the frames chug along...
I am i full agreement with here_it_comes, by the way, that the terrain-gen probably works exactly as intended; It is precisely in line with the vibe I got from doc. Ross' describing it; And that at least some on the team are probably surprised (...but shouldn't be, IMHO), and quite crushed that we don't like it.