Yes, they track within 500m. But there's often vehicles outside that distance which are very clearly visible. The Rangefinder does work when within lock-on range, but it would be nice if we could get an approximate distance from beyond that range so we know that the target actually exists and isn't a lag echo.
Mostly I mean so that you can tell how far away Aircraft are. There's no depth perception against the skybox the way there is against the world geometry.