Problem is that gl_Fog.color is black... so if you mix 100% of that in below the horizon, you're back to the black hole. But mixing some of it works not so bad. During daytime, using the Local Weather altitude model of visibility, for a particular range of parameter settings I have now something that is seamless and not so bad. At dusk or dawn, the colors don't look so well with the terrain.
Basically, the shader is appropriate for a clear day with visibility on the ground in excess of 35 km or so, then the altitude increase of visibility will fix the rest and push the horizon out far enough. In principle, visibility high up would always meet the criterion, but then one has to switch the skydome shader from default to scattering on the way up and it isn't seamless any more

For a closed cloud layer, I could pull it of while flying during the cloud, but in 4/8 I don't know what to do.
My weather-research F-16 on the ground.

Note that the horizon is a bit darkened because I mix gl_FOg.color in - actually just at the horizon line, it blends smoothly under most conditions which can be seen from about 5000 ft. But we'll go higher to see the flaws.
At about airliner cruise altitude of 34.000 ft.

At this altitude, the horizon line is rather well visible, but then there's greyish haze beyond it, and with some Cirrus clouds in the vicinity it doesn;t look too bad.
In ballistic flight at 63.000 ft:

The increased high-altitude visibility pushes out the horizon so that the overall impression isn't changed (the actual visibility range is actually much more than at 34.000 ft) there's a haze band beyond the horizon line, you can see where the terrain ends, but it's actually not that bad. And it's seamless all the way up to here from the ground.
Same scene from external view:

Again, looks sort of semi-plausible. Actually, I would like to look it like this given the altitude

but that doesn't work on the ground, it's gives way too dark skies. I guess the physics reason is that the density distribution of scatterers in nature usually isn't just exponential in altitude, so that's where a weather-dependent atmosphere model would come in.
Technically it corresponds to a dynamical re-adjustment of
rayleigh and
mie with increasing visibility range, which could easily enough be done in Local Weather.
The question (especially to Lauri) is - should we proceed like this? It'd require to accept that shader parameters are set from Nasal and no longer runtime controllable from the menu, and to change the current shaders against my version where some tinkering is done to fix the region below the horizon (which all probably can be coded much more elegantly and efficiently, I don't really know any GLSL, I'm just picking it up as I go along...).
Then, when you enable the skydome shader and Local Weather is running, it would assume control of the shader parameters and set them to whatever it thinks is appropriate given the visibility (and it'd look silly for low visibility...). If you want your work to end up that way, I can proceed with integration, otherwise I'll just drop it from here.
I'd love to have a consistent shader for terrain and skydome for arbitrary density distributions and visibilities, but I guess that's a long term project...