In a sense, though retexturing the sky itself would allow for a greater illusion of scale, allowing us to create convincing outer space skyboxes, or distant mountain ranges. The possibilities are endless.
Megaprims aren't as efficient as this method, as they take up land impact and have a set scale, breaking the illusion if the edge is approached by an avatar. An avatar will never reach the end of the Second Life sky, lending authenticity to the illusion.