I have a 3D point cloud data set with different attributes that I visualize as points so far, and I want to have LOD based on distance from the set. I want to be able to have a generalized view from far away with fewer and larger points, and as I zoom in I want a more points correctly spaced out appearing automatically.

Kind of like this video below, behavior wise: http://vimeo.com/61148577

I thought one solution would be to use an adaptive octree, but I'm not sure if that is a good solution. I've been looking into hierarchical clustering with seamless transitions, but I'm not sure which solution I should go with that fits my goal.

Any ideas, tips on where to start? Or some specific method?

Thanks