This test has been sitting in my hard drive for quite a long time now, I feel it must be shared. I had a discussion with my friend Brett Hartshorn regarding dynamic mesh LoDs (level of detail) and dynamic texture LoDs. And I just thought, out of curiosity to build upon his idea and try to generate a similar scenario inside Blender's interface itself, harnessing Blender's flexible drivers system.
You can find more about LoD (level of detail) here in Wikipedia http://en.wikipedia.org/wiki/Level_of_detail
Another useful link (credits to Jude Jackson) from Pixar http://graphics.pixar.com/library/StochasticSimplification/
To those who are interested to tinker around with the setup, you can download the .blend file here http://dl.dropbox.com/u/9701519/blender_mesh_lod.zip