Hi Shawn,
Fog (material channel) is very simple in its use. Especially since you have an object to deal with.
Depth path would require of course then to render out much higher resolution. A depth pass is not anti aliased, as it is an information pass pass. yes it is based here on gray values. Rendering it with AA might result in artifacts. many people do not realize that and end up with weird edge treatment. However, it is project and quality dependent—target wise of course. There is of course a lot possible with the depth pass, and if render out nicely, you might get a better result, as fog, environment or any of these options normally affect only the RGB values of each pixel. Areial perspective is certainly not that simple, if you go for something more adequate.
Going from one application to another had for me always a more or less claustrophobic feeling, as I always compared. In one app a pro and in the new one a starter. Nothing that I call fun. But having done it often enough, I know the reasons and worked myself to an position of accepting the limitation as a starter, it works much faster than. But you go your way of course. However:
I stick with it, LW and C4D are two different packages, and as long as you search for similar things—your questions will limit the answer! But go ahead if you like as before, it is your question. Lightwave has certainly other options, but in the moment you have to explain first what it can do to anyone here, after that is communicated in detail (other wise it makes no sense) you finally start then to create your question. At a point where most people have perhaps already skipped your question. I leave it alone, do what makes you happy.
If you use the Environment (I thought you don’t) then check the “Affect Background”, then you can dial in the “Sfumato” or Arial Perspective to match the scene. You have (obviously?) a very small scene, so the Environment becomes affected based on a high setting, to affect the middle ground properly. Just an assumption. If i set the picture viewer to “A/B Difference” small values in my example scene here doesn’t show such effect.
A light source with no Diffuse/Specular, but set to Volumetric, could help here. Lights have the option to Clip their effect (Near/Far) in the Detail tab. Setting up a spot light and make it a child to the camera (same position) might produce what you like for the foreground. But yes it is between camera and sky object and will so affect of course the sky.
The simplest way, and again—only affecting the RGB values, not producing the real effect—is to place an gradient in each material to translate the saturation and “brightness” of the colors. In C4D you have the option to set a 3D gradient up, and set via XPresso the center of all Gradients to the center of e.g., the camera. Now you set up when and how (distance wise) each material is affected, or not at all. You avoid long calculation times, depth pass and rendering in passes to compose it later. See attached file. The XPResso is done with Set Driver/Set Driven Absolute. Gradient Space is set to “World”. The colors are set for illustration purposes.
All the best
Sassi