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I tried out the LowPoly grass mod with Bevilex' grass ini settings. The result is a great balance between quality and performance.
Highly recommend trying this out. Grass distance is much improved, fps/performance increases overall, and the quality drop is not much if using the default LowPoly grass.
LowPoly Grass: https://www.nexusmods.com/oblivion/mods/5434/
You only need to install 1 of the files. I recommend the default option with the Shivering Isles DLC. If you don't have that, then install the default version without it.
Bevilex' modlist: https://www.nexusmods.com/oblivion/mods/47591
Scroll down to the ini tweaks section. The grass settings are there.
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