No. It was indeed a bug. There have been numerous threads on Ubi forums talking about this LOD bug ever since AEP came out in 2004. And someone has even given a solution - adjusting intellisample settings, which, unfortunately, are unavailable for today's Nvidia cards.
Please look at these threads for more information:
http://forums.ubi.com/eve/forums?a=t...3&m=5921060163 (solution given in page 3)
http://forums.ubi.com/eve/forums/a/t...1091000033/p/1
http://forums.ubi.com/eve/forums/a/t...3/m/5581020063
Instead of making new LODs, can we use adjacent LOD for that problematic LOD? And I've rechecked in the game. 109s and 190s don't have the LOD problem. I'm using a GTX 295 on driver version of 280.26 (updated yesterday).
And about the realism of current dot visiblity. The dots are already too hard to see for me under 1920 x 1200 screen resolution. Aircraft in distance is only a tiny black dot. Though once I go back to 1024x768, it is true that the dot is too easy to see. Actually I think block is a better name here. But this still doesn't solve the invisible LOD problem.
Can we make it that no matter what resolution is used, the dot will always occupies 4 pixels on the screen? Thay way the dot visibility is fair for all players using different graphics settings