Even if it is revised to a certain extent, I'd expect the squares would still be visible at high altitudes.
IMO it's a certain price to pay for how AH terrains are set up. Compared to IL2/FB that has fantastic landscape but no user access at all, the tiles set up like Lego blocks in AH allow us to create terrains any way we like through the Terrain Editor tool.
But of course, I think that there still is room for improvement to design each tile textures so that the transitions go smooth and less noticeable - but my guess is the HTC art staff are more or less engaged in other things right now.
Maybe when the AH2 TE is released, with the help of clever tile makers like Nuttz, we'll get to see more creative and natural terrains. In overall, I do agree with you Halo.