Just set the Variable via console yourself "setgs fHUDCompassLocationMaxDist xxxxx" where xxxx is your preferred value :) Or set the value with autoexec. No need for mod, its an ini tweak.
But not everyone has console access. And even if you do you'd have to tinker with it each playthru, plus you'd have to know/research in advance what the values are and keep notes of the console command etc, etc. Whereas the mod is a simple apply-once thing.
Edit: Amber1019's bug report is correct - I checked it myself and both the 25% and 75% reductions are set to 5000. Vanilla distance is 20000, half is 10000. Personally, I would do this mod the other way around (eg 75 = 75% of original distance, not 75% reduction), and clearly you got as confused when making the mod as I did when choosing which option! It may be better to use distance-setting rather than percentage in the option names?
It would make a lot more sense to get a generic icon once you have line-to-sight to a location. Then as you get closer, you get a more detailed icon for that type of location. I welcome someone else to make such a mod.
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Edit: Amber1019's bug report is correct - I checked it myself and both the 25% and 75% reductions are set to 5000. Vanilla distance is 20000, half is 10000. Personally, I would do this mod the other way around (eg 75 = 75% of original distance, not 75% reduction), and clearly you got as confused when making the mod as I did when choosing which option! It may be better to use distance-setting rather than percentage in the option names?