They said that they plan to increase the fidelity exposed via the graphics settings, which means that the Terrain Level Of Detail could go beyond 200 when hardware is stronger. Right now it makes sense to keep 200 as the limit because it’s very CPU-heavy, and unfortunately the game’s CPU optimisation isn’t great at the moment.
However, there is a workaround for now that involves tweaking. Look in here: PSA: LOD Slider Can Be Increased Past 200 - Dramatically Improves Photogrammatery