Due to our ongoing optimization efforts, we have completely replaced the current (quite primitive) LOD system which was based on a minimum and maximum activation distance for Group nodes. This change was necessary for the upcoming scene processing optimizations and the refactoring to use a spatial graph. But I think the new system is also much more useful. I hope nobody is using or requiring the Group node LOD system since it won't work any more.
In the new system Mesh nodes have an LOD level and are only rendered when that level corresponds to the level calculated for the model (Model nodes have distances describing when the LOD level should be switched). To make that useful, we extended ColladaConv to support LOD. All LOD meshes are defined in a single asset. We have a special naming convention (postfixes _lod1 to _lod4 for mesh names) which ColladaConv translates to the LOD level.
To test the new system we created three LODs for the Chicago character with an automatic mesh simplification tool. The results are very satisfying: The framerate of the Chicago demo got a huge boost, especially when viewed from some distance. And there is hardly any popping noticable, although we did not spend much time on tweaking the distance values. Try it out yourself and tell us what performance gains you are getting
EDIT:
A few more reasons why the new system is more practical:
Before you had to attach three models to three group nodes with special distance settings to get a base model with two LODs. One problem here was animation handling: You had to animate all three LOD models independently. Even worse, IK which requires manual joint updates. For that you had to track all the LODs in your application to make sure they got synchronized. The LOD models were not connected in any way and skeleton sharing was not possible. Now, with the new system, you just need one model and the LOD handling is done on the mesh level in a much more transparent way. The skeleton is shared. It would also be possible to implement some skeletal LOD by giving a maximum LOD level to joints but this is left for the (far) future.