This mod called FarPlaneTwo mod is what I've been looking for years, it's still in early development but the creator who's and absolute mad lad has huge plans for it, AsianHalfSquat has done a good showcase of it.

• FarPlaneTwo

  28 1,451 3.7 Java

  Level-of-Detail renderer in Minecraft. Allows for render distances of millions of blocks. (Cubic Chunks-compatible) (WIP)

  

If one guy can get this working in a modded java environment and wants to have no more than a 25% performance drop, I'm fairly sure Mojang should have no issue implementing it into the core code with little performance issues. Bearing in mind the guy explained on the Github page that the world basically generates twice, once in normal detail and once in "low" detail before rendering because there is no generation method in vanilla Minecraft to handle generating "low" only. If Mojang implemented it they could add the needed secondary distant generation to allow for even better performance on generating the world and would be able to optimise it to help with overall performance.

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