Yes, ES matters more at further distance. As your target remains at the same size but goes back further in distance, narrowing its scale, a larger ES will reduce hit probability. It's not that impressive to be able to hit a 3x3 ft target a 1000….a 4inch target however…you'll want a little lower ES for consistency.
That said, in my own testing, factory ammo has gotten in the mid 20s for ES (on 10 shot groups in the same lot#) and performs as one would expect. 14 inch square at 1000y isn't too difficult.
At close/r range, you may not even notice the ES difference. It's possible one can have a fairly bad group at 100y and have a tight ES. The same goes for having a tight group and a horrible ES. In this case, you use your ballistic software, your hit probability goes down because that large ES swing deviates too far from the muzzle velocity you are using in the software, for that longer distance.