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Hasn't Outcast (1999) used the same/similar techniques for terrain rendering.

The re-released it on GOG last year, and remade it this year with a Unity engine (all polygons now).

We had interpolation to "blur" the rendering + some other optimizations (mostly stemming from the fact that the engine inner loops where super heavily optimized (think VTune level optimizations)) (note that I didn't work on the voxel engine, it was a colleague; I just worked on optimizing the 3D triangle pipeline)

(edited for more clarity and info)

Indeed, Outcast used the same technique. However, not as simple as this algorithm. They included interpolation for the terrain and polygon rendering for the parts, which are not terrain.

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