The bigger the delay is, the harder the transition will be.
I.e. You get in a chopper and start elevating. Your viewdistance is 500. Then in 10 seconds you gain the altitude of 200 and B00m! the viewdistance suddenly changes to 2000. First you saw shit and now you can see like an eagle. Then you drop to 80 meters fast and Flash! your viewdistance is suddenly 800 again.
That doesn't sound like it would look good.
Maybe the setfog command is less cpu heavy and could be used in addition with the setviewdistance command to make the effect smoother between changes and yet lag free.
Setfog, like the other environment effect commands, should be local to the clients where they are executed, if I remember right.