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I guess there's hope for psvr in that case, targeting higher frame rates will make that more achievable. However he also said:
“Once we get to dual 8Ks, it’ll be pretty nice,” he said. “Dual 8K and about a 200Hz refresh rate. Maybe in another 50 years?”
https://venturebeat.com/2017/06/21/gran-turismo-creator-expected-a-more-incredible-psvr/

My 4K HDR tv doesn't go over 60 fps input wise and it's too soon to buy another one again. Small chance a firmware update can add 120 hz input, no idea. It doesn't really matter anyway since the real bottleneck is the internet. GT Sport on the American server puts people 9,000 km apart together. From Canada to Brazil (where GT Sport is very popular) has default 166ms ping time (global ping statistics Toronto to Brasilia). Then you get consumer (isp to home) internet lag on top of that. So reducing the render time by 8 ms isn't going to do one bit for sport mode. Well I guess it's a reduction by 16ms since the transmission and display side will be faster as well.

Anyway a stable frame rate with stable input lag is all you need. You simply get used to where to brake and when to turn in, as long as it's constant and below 100ms total it doesn't matter what it really is. I've only had trouble in NFS Shift 2 where the input lag was 120ms. The fast cars became too difficult to keep straight. Perhaps the silly twitchy cars like SRT Tomahawk will be easier to drive at 120 fps. Racing is mostly anticipating and reading the moves of other cars well before they happen. If you drive like a twitch shooter you won't get far. Improving the forward prediction to compensate lag variance will improve sport mode 10x more than doubling the frame rate.