Yes. Objects at a distance higher than fog end value are totally hidden by fog.
The same with start fog. If you put a negative value, the fog starts behind the camera. This is useful in games for making a thicker ambient.
In this pic I modified the fog start with a value of -100. This shows as more dense water.
http://www.mp-labs.com/sh2mods/waterfog_dense.jpg
The scene.dat file has a lot of modification capabilities.