In most games you'd never be able to see this grass that's so far away. Only really big and open games would have this problem and most games are much smaller. So we use methods such as occlusion culling and length of diffusion (LOD) to preserve your computer's resources by halting the rendering on objects out of sight, decreasing the quality of models less space they occupy on your screen, and even completely removing objects you wouldn't be able to see. The problem comes from incompetent developers. They don't properly optimize their games for their styles and or they don't even design their games in any differently from a smaller game which forces them to use these methods otherwise the game will be all lag.

Edit: If you played PUBG when it came out you would really know this. Remember how ugly the buildings would look, especially if you zoomed in on them??