That's how fog should look in swampy areas (ground-fog). I will say that your game is very "bright", however. Perhaps lowering the gamma a bit will add a bit more depth and overall murkiness. Looking more carefully at the image, it seems that lit areas are bright enough that the textures are almost flat.
The size of each "cloud of fog" looks right to me, though? If the overall weather is foggy, I think there are additional, larger drifts in some areas. That could be what you're remembering.