Thing is, draw distance and LOD of more or less everything in the rendering engine (assets, lighting, shadows, decals, tessellation, bells, whistles, dinosaurs, chicken nuggets, etc) is the easiest thing to scale back on dated hardware (including PC configurations) for massive performance gains, and is where console hardware will always suffer most compared to a platform like PC which has no ceiling.
Long and short of it (literally); rendering a lot of stuff over a long distance has always been very, very expensive. So it's not really surprising this is where both the PS4 and Xbone builds suffer hardest. It'll be the same for every open world game.