scaling it down will make the problem worse... just as scaling it up - unless you know what the scale of the world is makes it hard to tell
if 1,000dbu = 1meter then that is the perfect size for the Zbuffer (and about as good as you'll get it)
adding fog and camera distancing unfortunatly is the only option available.
and the fog depend on what you want to achieve really - i mean if its to be an open game like say Quake3 where visual are essential to gameplay and fog is to really only be for like effects then i agree with doomer - but adding it for atomspherics deeply sometimes works well.
unfortunatly fog can't be specified yet - or made volumetric (which is the biggest shame)
i mean pro has volumetric, but its camera based not emitter based

you can hack this effect by making the fog closer and you get closer to emitters and such - even changing colours for depth. and using it for dark dungeons is a very good effect
Anata aru kowagaru no watashi! 