It is an interesting idea but changing the graphics details you mention would involve texture and objects dumping / loading, LOD changes, and would result in massive stuttering / pauses if done dynamically.
What can be done, and already exists in other games, is dynamic resolution scaling. This is a feature that the GPU can do in real time in order to keep the framerate at a value set by the user and provides a seamless experience.
I bet that’s the way the sim will be playable on XBox, also considering that usually XBox users play on a TV and sit at a few meters from it, so many of them won’t even notice the resolution changes. With the XBox version and the PC DX12 version, this feature may be available also for PC users.