So I'm playing this with all the settings maxed out but it seems like textures for far away geometry like mountains etc look awful. I mean the textures look like N64 washed out bad, it just doesn't look right. Are the textures supposed to look like this?

A screenshot would be helpful. :)
But yes, it noticed that too. My guess is it's supposed to be like this. Maybe due to the limitations of the console hardware when it came out...

I just discovered that in the GOG launcher if you click The Saboteur > More > Other this is some more graphical options that isnt in the ingame menu. I havent tried it sinced setting everything to max but Id imagine this will help.