Camera should work basically the same in TG2 as TG Classic, in terms of distortion. In TG Classic it was "Zoom" that determined your field of view. In TG2 it's horizontal or vertical fov, defaulting to horizontal. So increase FoV to get a wider view, it should distort similarly to TG Classic, which is just a result of the camera projection used. I would not say, however, that distortion is *desirable* for a skybox, per se. Also I don't see a lot of distortion in your example image, the edge of the sky is curved because it's a hemisphere over the terrain.
To turn off the terrain in TG2, just go to the settings of the Planet object and uncheck Render Surface. Because the atmosphere is a sphere rather than a hemisphere in TG2, it will render atmosphere all around you, and not a black area like you see in TG Classic.
- Oshyan