Yup it's a great combo, HD textures to kill fps even more in case you missed this post on Nexus:
"...Turns out, Valheim by default only allows 512 MB of memory space for textures, probably because they are so low in vanilla..."

If your GPU has 6GB or more memory, you can allow more.
In the CustomGraphicsSettings.cfg

## The total amount of memory to be used by streaming and non-streaming textures.
# Setting type: Int32
# Default value: 512
streamingMipmapsMemoryBudget = 4096

gives BIG boost to fps!