I haven't seen any downgrade. I don't get why they made loot windows bigger, but that's the only thing I noticed negative. I have the ui set as small as possible and things are still pretty big, so making that bigger was frustrating, but overall the patch seems to have been improvements. If you had any tweaks made to the config files, those all have to be re-done you know. It reset all the settings basically in a lot of things, all the key binds too. They only added one new entry to the user.settings, TextureMipBias, and all the other default ultra values are the same (when you re-apply ultra, as someone else said before it may have switched on you during the update).
I think it may have broke some reShade/SweetFX things, so if you were using those, that's probably your issue.
As for me, I like to change such that GrassDensity=3600, CascadeShadowmapSize=4096, CascadeShadowQuality=4, CascadeShadowDistanceScale0=4, CascadeShadowDistanceScale1=4, CascadeShadowDistanceScale2=3, CascadeShadowDistanceScale3=3. That makes the grass a lot prettier. I don't have anything else tweaked from Ultra, but having those at the standard "ultra" values does make the ground look pretty ugly I think.
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1.04 definitely made the grass/foliage look better ( less flat primarily) but that pop in....I was in a house and as I walked 5 ft forward could see the light being rendered through the window. walk backwards and it would disappear slowly each step.. Characters are taking anywhere from 5 seconds to 45 seconds to appear....fire/lighting/vines on walls etc. all pop in so badly that it is distracting from just playing the game. It seriously seems that LOD is forced to low for everyone now no matter the actual setting. CDPR, I love you guys, but c'mon......I just hope this doesn't end up the norm like the grass pop in in W2.
For those having shimmering problems, but like the sharpness, forcing HQ 16x anisotropic filtering through the nvidia control panel fixed the shimmering for me.
As for the character pop-in, I have noticed it a bit- but, I have also *not* seen any randomly floating NPC's gliding across Novigrad streets with their arms outstretched nor any severed heads terrorizing the markets with their horrifyingly flat 2-dimensional gazes as they seem to follow people for naught but nary a'good reasons no doubts in me head. That was getting to be a serious problem after a couple of hours between restarting the game in highly populated areas. The pop-in seems like a quick fix, which is better than the alternative of leaving it for weeks. I'm afeard its just something that'll take more time to optimize proper like, ya?