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Nvidia clarifies that DLSS 3 frame generation will add latency of 1/2 frame time. That means we are talking about frame interpolation between existing frames and the newest rendered frame has to be hold back for 1/2 frame time. This does not sound well for 30fps games or fast esport titles. It might work for slow games  like Flight Simulator running at 45-60fps to get to >60fps stable. Also it won't be able to smooth over CPU frame spikes because you need a rendered frame first before you can inject an interpolated frame.

https://wccftech.com/nvidia-ada-lovelace-follow-up-qa-dlss-3-ser-omm-dmm-and-more/