Suitability of ground fog using layered alpha quads?

Question

A layered approach would use a series of massive alpha-textured quads arranged parallel to the ground, intersecting all intervening terrain geometry, to provide the illusion of ground fog quite effectively from high up, looking down, and somewhat less effectively when inside the fog and looking toward the horizon (see image below).

Alternatively, a primarily shader-based approach would instead calculate density as function of view distance into the ground fog substrate, and output the fragment value based on that.

Without having to performance-test each approach myself, I would like first to hear others' experiences (not speculation!) on what sort of performance impact the layered alpha texture approach is likely to have. I ask specifically due to the oft-cited impacts of overdraw (not sure how fill-rate bound your average desktop system is). A list of games using this approach, particularly older games, would be immensely useful: if this was viable on pre DX9/OpenGL2 hardware, it is likely to work fine for me.

One big question is in regards to this sort of effect:

(Image credit goes to Lume of lume.com)

Notice how the vertical fog gradation is continuous / smooth. OTOH, using textured quad layers, I can only assume that layers would be mighty obvious when walking through them -- the more sparse they were, the more obvious this would be. This is in contrast to where fog planes are aligned to face the player every frame, where this coarseness would be much less obvious.