Pretty sure he mentioned it for planets, not ships. I don't think people would appreciate seeing their intricate capital ships look like blocky blobs from a distance.
I like the option idea mentioned, as I'm always a fan of options. But even without an option I don't think this would be a big deal. I mean take real life for example, if you look at an object that's far away it really will appear as just a big blob of something. If you've ever looked at a cargo ship far off on the horizon it's very difficult to discern details or scale. As you get closer you can pick up more details, so I think such a system would work just fine in starmade. Your intricate capital ship would be a big blob at a distance, but it should be, it's really far away and with no form of magnification there'd be no way to realistically get detail. I mean hell, even in the current system if your ship is far away it still looks like a big blob of blocks.
All in all I'm in support of any feature that increases the scale of the game. Bigger planets, more ships, better performance. If having my ship look like a borg cube at 30km out is the price I have to pay, I'd personally be willing to pay it.