Close. The original highest setting was "High." The console command could raise the shader level to what has now officially been turned into two options in the graphics menu - "Very High" and "Max." If I remember correctly, the value used for "Max" is 6, and that's as high as it goes.
We're lucky enough to have shadows and shaders, so I don't think Badspot or kompressor will use a different type of shadow drawing technique - so what we have know is as good as it gets. I forget what Badspot said it's called, but he has explained it. If you want to increase the sharpness, you can always lower the View Distance in the Environment Settings.
