Plus FSR will work on consoles. I expect within a few months we'll be seeing EVERY major release supporting FSR. I really think this is a sea-change moment, and we'll be seeing quite a bump in image quality that will be very noticeable on current-gen consoles.
Don't count out DLSS. They're working on their 3.0 version, and there's likely to be some really great improvements. At this point though, I think we're going to be hitting diminishing-returns for upscaling image quality. But there's other areas that DLSS can push that will be meaningful.
- Ease of implementation. nvidia needs to move away from game-specific training sets & models to a general model. Game-specific training is a GIGANTIC amount of work for devs (rumor is that nvidia almost always has to do it themselves). The existence of competitive technologies like FSR 2.0 that don't require any training at all... Honestly I think DLSS 3.0 will be DOA if it still requires game-specific training. I've already seen people successfully applying newer games DLSS models to older games and seeing some improvements there, so this is entirely doable if nvidia wants to.
- Performance. If nvidia can improve image quality for lower-resolution rendering, that would be a major competitive advantage.
- Compatibility with all modern nvidia cards. This means building fall-backs for older hardware, and could theoretically even allow them to run on competitors' cards if they chose to. None of this sounds like stuff nvidia will want to do. But as their competitors are using "ubiquity" (including consoles) as their competitive advantage, nvidia will need to find some way to stay competitive.
- AI upscaling has the potential to grow into doing lots of graphical things that FSR can never do. Theoretically, AI upscaling could change the graphics style of a game: stylize your game into a cartoon? make it look like an old-timey film? Add a level of photo-realism? Researchers are currently doing tons of crazy stuff with AI-based images, and all of those are theoretically possible for DLSS to grow into.