Two filters, two regimes
Whether a texture is being enlarged or shrunk at a given pixel depends on the
geometry, and the hardware picks the matching filter automatically. Where one
texel covers many pixels (the near floor, or the zoomed-in 2D view) the
magnification filter runs: nearest snaps to the
closest texel and shows hard blocks; linear blends the four
surrounding texels into a smooth ramp. Where many texels fall under one pixel
(the distance) the minification filter runs instead. Changing
one filter leaves the other regime untouched — that independence is the
thing to feel.
Why the distance shimmers
Minification is the harder problem. One pixel covers dozens of texels, but a plain sample reads just one of them. As the surface (or camera) moves, which texel gets read jumps around, so the far floor crawls and sparkles — that's aliasing: high-frequency detail masquerading as low-frequency junk because we undersampled it.
Mipmaps: shrink it ahead of time
The fix is to precompute the shrinking. A mipmap is a chain of progressively half-sized copies of the texture, each one a proper average of the last. At distance the hardware reads from a smaller level where the averaging is already done, so a pixel gets a stable blend instead of a lottery pick. Trilinear blends between the two nearest mip levels so the transition is seamless; anisotropic takes several samples along the stretched direction so a floor at a grazing angle stays sharp instead of going uniformly blurry. Toggle Motion to make the shimmer crawl, then add mips and watch it settle.