Uh, is it supposed to look that bad ?

[Taldirokk]

Blend target resolution does seem to be the overriding factor for the artifacting seen in the OP's first image. Current versions of the game also seem to handle arbitary settings here. Unfortunately, much past 2k (default ultra and ultra+ terrain quality are 1k, high and medium are 512, while low is 256) starts to overload pretty much any GPU I've got. I'd need somewhere around8k to render worst case areas unobtrusive, but the game wouldn't be playable.

That's at least something, i'll test at 4096, see if it makes any difference regarding that issue.

 

[Taldirokk]

There

To note, it's obviously at a different time, but same place, the blocky stuff and weird coloration is still there, not sure if it made that much of a difference.
BlendTargetsResolution at 4096.

 

[Morbad]

To note, it's obviously at a different time, but same place, the blocky stuff and weird coloration is still there, not sure if it made that much of a difference.
BlendTargetsResolution at 4096.

The blocks do look smaller to me, but I'm not sure how controlled the altitude is between images.