On console

House is blurred until you get up close.

Poles, object, anything distance is blurred.

Is this a technical workaround to draw distance or a game feature?

 

This is on purpose. The depth of field is replicating what it would actually look like of you were that small. Give the appearance of how large the world is. Your eyes would be a lot smaller hence less light being perceived at such a small size. On pc you can shut this off and see everything in the background clearly. No word of they'll have this option in the future but they might.