Currently you cannot increase view distance in game. I think that this option should come back, I don't see a reason to block users from setting max view distance and max object view distance. Distance at which we see zombies, animals and especially players should not be changeable in settings as this would provide unfair advantage. However distance for landscapes and objects should definitely be adjustable to allow for beautiful landscapes. After all it's player's choice if he wants more FPS or better visuals.