This "better-graphics=more-lag" argument is really beginning to go on my nerves.
You see, server-side, nothing changes, they ain't running no 3d graphics on the server. So, if the better graphics start to lag your CLIENT, then tone down the detail settings (of course those have to be available) OR get a faster computer. Either way you can still play but you do get a CHOICE. And personally, I like to have choices.
It's no problem to release a single install that provides different graphics options. Actually I consider any argument beyond the download size one an excuse.
Graphics engine wise, you can implement the necessary options that reduce scene complexity and improve render speed for those with slower machine or the desire to max out their framerates.
Textures wise, you can simply deliver the highest resolution textures supported (for example a 64mb set) and have the setup utility render it down (a one time, offline process) to say a 32 or 16mb set.
Or if that is an insufficient or impractical solution, you release it with the lowest resolution textures required and allow for highres texture downloads in optional packages.
And a final point. Nobody in this thread critizes AH for being a bad game. It is in fact a great game, that's why we're here and here to stay. All some people would like to see are options to improve their game experience visually, which can be done without impairing the enjoyment of those pilots who run less powerful computer equipment.
Anyway, amen to my own argument.

-Amboss