" I had no problems getting in close and identifying cons. The sense of immersion was awsome. "
I had them off last night (accidently) when I first logged in and found the experience to be the opposite. Everything was a gray/black indistinguishable plane "form" when 2K to 5k away and beyond that it was a mere black dot. In RL I'd have a much easier time positively IDing something close and I would have been able to determine at least the overall color at those things that got further away. Instead in AH you get , dot, a larger but still unrecognizable form and finally when very VERY close in you get a real shape and artwork.
I have an AMD 2400+, WIN98SE, a GForce2 GTS 64mb and a 19 monitor with .28dpi. Desktop and AH is set for 1024X768 and 32bit. I'm curious what size and DPI your monitor is and also what graphics card and resolution you play with?
I would much rather fight in an iconless environment. But for me to do so right now it makes AH even more unrealistic than when they are on.