Well, I tried the demo, and yes, I have the white-ish fog. It seems that only a small spherical area around the camera is fog-free.
Originally Posted by Gorath 
This will be solved. DS and PB are working on it.
Glad to hear. I was already convincing myself that I'm going to play the game even with the fog!
Hm, I also get black squares around certain objects. Has anyone else encountered this?