Sorry about the double post, seems it's been majorly improved, but not entirely fixed.
See the tree's in this vid I just made, latest Beta.
Watch in 720p/1080p for best quality... 480p still visible though.
EDIT: It seems what I am demonstrating in the above video has been around since ArmA1/2009.... Uhgg..
http://forums.bistudio.com/showthread.php?90401-Zooming-and-LOD-switching
And proving grounds tree's lod switching while driving..
Look at the tree's on the left.