conradolson
u/conradolson
In this shot, two reasons:
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To give the scene scale. The mountains are far away. Adding haze sells that idea. It shows that there is a lot of atmosphere between the mountains and the camera. This does happen in real life, even if it’s a clear day.
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To separate the background from the dragon. They have probably exaggerated the haze so there is some more obvious visual separate between the earthy colours of the mountains and the earthy colours of the dragon. Without the haze they would blend together and you wouldn’t know where to look.
Use a normal merge node to merge the rgba, and use a ZMerge to merge the depth. Then copy the depth over with a Copy node.
The reason you are getting crunchy edges is that z passes aren't usually filtered to get smooth edges like an alpha channel is. This is deliberate, you usually want unfiltered utility passes.