Sorry to break it to you, but fog is real and it can be very dense and thick at times. Since this is a survival game set in the cold nordic realm, with a lot of lush forests and foliage, surrounded by mountains and bodies of water, and a warm sun that comes out during the day, fog makes a lot of sense. It wouldn't make a lick of sense to not have some fog.

Sure, it has always been used as a trick to hide poor view distances in games, but it makes total sense here.