I actually used similar camera draw distance trick in my game Rogue Stargun.

The real way to optimize this stuff really well is for the artist to spend a lot of time making LODS for the distant objects. For the really distant objects, esp for a platform like n64, you can replace the distant objects with billboard imposters which are basically just flat poster textures that swap perspectives at certain angles.

GTA V does this extremely well with many manually made LODs and its very costly

They have a very complicated and robust pipeline that generates all of those LODs automatically. The artists aren't manually creating them.

Another game that I find has very impressive draw distance is Just Cause 2. You can see objects very far away when flying etc, but they look very detailed and do not change when moving closer. Definitely blew me away the first time playing it.