That picture does look better than what a GeForce does on FSAA. However, you didn't snap a picture where the scenery is actually visible.
I would like to make another point about FSAA that actually supports your position vs mine. People always describe the AA (stands for Anti Aliasing) as "removing the jaggies" on diagonal lines. That's not really why it's called anti aliasing. It involves things in the distance where you can't actually see the lines. However, when these distant textures or polygons are rendered they can "alias" with each other ie give sub harmonics. This leads to the shimmering you sometimes see in distance scenery in some simulations as well as the occassional Moire like patterns. Anti-aliasing renders slightly shifted versions of these polygons so that each pixel rendered gets an
average intensity of several renderings. This not only kills the jaggies in close polygons, but prevents the shimmering and Moire aliasing in distant ones by preventing sub harmonics. It prevents sub harmonics by basically
sampling the image at a spatial frequency higher than the display resolution. That's why it kills frame rate: the card is rendering several versions of each frame per displayed frame. The VooDoo cards do this better than GeForce ones. But then VooDoo will probably not have any support in the future.