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Regarding diminishing returns that would be resolution. 2k versus 4k, not much difference. 30 fps versus 60 fps is massive. As for lighting it matter significantly on the right display. Perhaps on a cheap $200 Costco TV the improved lighting is meh. But on a high end OLED, night and day.

My main point is the one thing we don't need is 4k, native or upscaled. 2k is fine and power should go to fps.