Yeah, there’s a reason any movie attempting 3D CG with any budget at all has used path tracing for years. It’s objectively massively higher quality.
You don’t need upscaling or denoising (the “AI” they’re talking about) to do raster stuff, but realistic lighting does a hugely better job, regardless of the art style you’re talking about. It’s not just photorealism, either. Look at all Disney’s animated stuff. Stuff like Moana and Elemental aren’t photorealistic and aren’t trying to be, but they’re still massively enhanced visually by improving the realism of the behavior of light, because that’s what our eyes understand. It takes a lot of math to handle all those volumetric shots through water and glass in a way that looks good.
DLSS and FSR are not comparable.
“FSR looks like shit” is not the same thing as “upscaling looks like shit”.