Although there are other mods that also serve this purpose for fabric I was wondering about the possiblity of having this functionality built into carpet directly as it'd be one less mod to wait for updates for whenever new minecraft patches are released.

Do you mean dimension-specific view distances?
For example:

• Overworld render distance = 10 chunks
• Nether render distance = 6 chunks
• End render distance = 12 chunks

That is correct yes, possibly with support for additional dimensions that are added from other mods/datapacks

feels like a ux/ui config nightmare to me. I could see the appeal, but I don't think it's essential, especially if there are mods that do that already.