The ConfigUser.xml has a higher priority than the ConfigDefault.xml.

Here's is an even more agressive setting that improves all but the morphing vegetation.
(you have to to edit the High section if you use the High setting)

<High
Item_Small="5000.0"
Item_Medium="10000.0"
Item_Large="16000.0"
NPC_Small="2000.0"
NPC_Medium="4000.0"
NPC_Large="6000.0"
Level_Small="12000.0"
Level_Medium="23000.0"
Level_Large="30000.0"
Object_Small="3500.0"
Object_Medium="10000.0"
Object_Large="18000.0"
SpeedTree_Small="12000.0"
SpeedTree_Medium="22000.0"
SpeedTree_Large="32000.0"
Events_Small="2500.0"
Events_Medium="8000.0"
Events_Large="11000.0"
Effects_Small="6000.0"
Effects_Medium="11000.0"
Effects_Large="21000.0"
Lights="7000.0"
Terrain="100000.0"

PS:
The ConfigUser.xml is here:
C:\Users\<UserName>\AppData\Local\Risen2\Config