How can that be a good thing? no one wants popups in their sim just in close proximity. I can understand that this maybe have to be on the xbox to preserve memory, but on pc this should be optional.
Proper optimization is always a good thing, because the more lightweight objects are, the smoother the simulator is but, it's not as if we made it up, it's Microsoft/Asobo who announced that products without proper LODs won't work, we still don't know exactly how this will work or if the LODs values from MSFS 2020 has been changed, but we'll know it soon enough.
It will be a problem only for those developers which never cared too much for LODs. They don't do them because they love their users, they don't do it because *adding* LODs is A LOT of extra work that takes time, so most developers (especially of airports, but not only), just skip them so they can sell their unoptimized product more quickly.
Once I had a chat with Jorg, and he said to me there are some products that are done so badly, that the sim got close to exhausting memory as soon the airport loads, and they had to do all crazy things in code just to save it from crashing.
I guess this is probably due to the fact MSFS 2024 will be DirectX 12 only. While in DirectX 11, if you overload your VRAM (everything 3D goes into VRAM, not just textures, but also polygons), the worse it can happen, it will affect fps, but the memory handling is usually fine, because it's made by the drivers, and there's an army of developers at nVidia or AMD working just on drivers to be sure they are solid.
But in DirectX 12, memory handling is the responsibility of the application itself (MSFS), if VRAM ends or is close to exhaustion, saving the sim from a crash or even a BSOD, is supposed to be done by the game itself, and that's not something you want to do, since developing a flight sim is hard enough by itself, no need to add saving yourself from unoptimized 3rd party content, so I understand their decision.