Unfortunately many games can not draw from an infinite horizon. When you drive down the road, there are items that eventually come into your field of vision. As hardware progresses, programmers will in time provide the same effect. And the issue really comes into play with driving games. Porsche Unleashed for the PlayStation, what you have is pop-up to the extreme.
Buildings literally appear out of nowhere along the course.
This is akin to driving with your eyes closed and suddenly opening them. Draw-in is a little different. Rather than instantly appearing, items are quickly blended into the game. So if you cover a picture and peel away the cover, that is draw-in. The Nintendo 64 has a way of reducing both nasties.