Yes, you can customize the intensity of the frob highlighting in the game itself too, provided that you are running NewDark. The configuration variable you want to use is highlight_level, which permits you to specify the intensity as a percentage. To disable highlighting entirely, you would just need to set this to zero.
More simply, just adding the following line to a suitable configuration file, such as cam_ext.cfg, should accomplish what you want.
Code:highlight_level 0