
It can vary from having a keyboard key bring up a menu, to having to be near a specific ingame object (Flag pole, bulletin board, ammo box, whatever the mission maker decides) which adds an option to adjust view distance to your action menu (options that come up when you scroll your mouse wheel). This can be confusing as it's up to each mission maker how this is implemented. They are instead hard coded by the mission maker or adjustable from within the mission. Multiplayer missions generally do not follow the view distance you set in you video settings. Aim for 2-3k maybe less if your playing in towns or forests for that mission. Anything above about 5km is generally overkill because objects and units don't show up past that anyway. Try reducing that and see if you can get acceptable performance. View Distance is a huge FPS hog in Arma aswell. I do not see any possibility for better performance without a faster CPU, if this is a "real" CPU bottleneck situation. My prediction is that by increasing graphical detail the OP is going to see one of two scenarios play out: better visuals with no apparent framerate penalty (since it's just using the excess GPU capacity that was sitting unused before) or, if he increases the detail to the point where the GTX 970 is starting to struggle, he may see performance decrease a bit as the bottleneck shifts back to the GPU. The CPU isn't doing more work when there's a lighter graphical load it's that with a light graphical load, the GPU is removed as the bottleneck and CPU performance becomes more apparent as it begins to be what limits the game's framerate. The CPU is basically doing the same work either way, and therefore it generally hits the same framerate limit regardless of what the video card's workload is. The GPU is still rendering the game either way.

Running games in LOW settings on high end hardware, can sometimes be MORE taxing

The 8350 is not the best CPU, especially not for ARMA, but what i said should hold true Agreed, but if the GPU is doing no work then you can offset that by making the GPU work more, thus removing the bottleneck off the CPU (since the CPU is basically rendering the game instead of the GPU)
