Is DLSS/FSR broken?

[aiqa]

The 30/60 fps settings for DLSS is only for automatically lowering render resolution. That doesn't mean DLSS is only active when that happens.
You can think of it like this. As long as your fps is higher than 30/60 fps, you get "DLSS Quality". When fps drops lower, you get "DLSS Balanced".

The "tests" people did to show FSR looks better were just misinformed.
What they did, is set resolution scaling to 99% and then make screenshots to show how good it looks.
The FSR version in FF is FSR1. FSR1 is a basic upscaler combined with a sharpening filter. When you set resolution to 99% you don't really use that upscaling, but the sharpening filter is still activated.
That doesn't mean "FSR is better than DLSS". That just means you prefer a sharpening filter. If you want a sharpening filter, there are other ways to apply sharpening filters that also work while DLSS is active. Like the Nvidia overlay from NvApp. Or some reshade option.

For optimal DLSS visuals my advice would be to set overrides in NvApp.
Set "DLSS Override - Models Preset" to "Latest". That gets you the latest transformer based DLSS, which removes almost all "TAA blur". And lets you lower quality setting at least one tier, without negatively affecting visuals.
And if you have performance to spare, set "DLSS Override - Superresolution" to "DLAA". Or to some other setting, is you want to higher performance with slightly softer visuals.