Yes, known issues. Grass takes its color from the grassy terrain texture; the flowers will be created in 3D. Nevertheless, I like how it looks like a dried grass in the distance. I think I'll replace the flowery texture with one with patches of dry grass instead.
Shadows don't work on the grass, I will add them only after we make a shadow mask. The way shadows are done now also causes visual bugs in the shadowed parts, it will be fixed by the mask as well.
The distance is going to be configurable, I just wanted to get it out quickly now. Btw, with current distance of 25m, there are around 5 million triangles of grass being thrown at the card, a small percentage of it being culled on the GPU.
I understand and wow that is A LOT of triangles being drawn, I like the dried appearance but right now it looks to white and the dry bits would usually live under trees and up against the edges of things . Something else I noticed and I'm not sure whether or not this will be changed is the frequency and locations of mud patches. I was trying to get an all grassy meadow type view for a desktop wallpaper but there were to many mud patches, maybe spread them out a bit and increase their size a little. The mud patches themselves appear to bright and/or under-saturated as well, I wasn't sure if this was intentional or will change later on or not. I have a monitor with extremely accurate color representation designed for graphics editing, broadcast checking, medical imagery and cad work so i tend to notice these things more.
In terms of the grass blades themselves I am very very impressed, I have never seen the grass being done like that in a game or real time 3d application before, it looks very very realistic and I love how it's different lengths (short in certain areas etc). as previously recommended though maybe make the blades just a tiny bit more dense at around a 1m radius around the players feet so when you look directly down, the blades look like they are more dense and you can't see the base ground so easily.
The distance blending is REALLY good, I don't see the grass pop in or out as i slowly fly towards or away from the ground. I did notice a small bug though, when you fly down towards the grass (in ufo mode) and slowly fly forward the closest blades disappear before they are completely off-screen.
Another minor visual tweak I think would look great Is to randomize the direction of the grass a bit, currently it is all pointing up and looks quite systematized. Here is a reference of some longer grass compared to Outerra's grass
The color of the overall grass and grass texture could use a tiny tiny tiny tiny but of tweaking as well (there's just a bit to much of an orangy/yellowish hue, the grass currently looks to 'warm') probably nit picking now though. Try making it look a bit 'colder'
Here's some images I've taken, these should give you a nice view of the grass for those of you who haven't bought the alpha yet, click for the full size pics (2560x1440)