It was last updated in September 2005 and back then (and still now), I've had trouble with lighting as the colors get washed out from the Sun. I do agree that lighting is more limited since only dynamic lights affect entities and that hardware only supports 8 such lights.
My LOD system allows for far more flexibility than the engine's built-in system does. Not only 4 LOD entities, but any number with the changes being set at distances unique to each entity (and they can be factorized as well making higher LODs visible longer at one angle than other angles). It does require a little more effort and in some cases can even be as fast or even faster than the engine's built-in LOD system.