This is the final nail in the coffin.
My primary complaint with DLSS is that the existence of the Tenser Cores on a chip where you are not going to be using Ray Tracing is fundamentally wasteful, that Silicon Area should just be used for more CUDA cores and Nvidia needs to have a high end GTX card available.
Secondly we have seen that basic up-scaling gives almost exactly the same benefits as DLSS, but does so without any need for extra hardware: https://www.techspot.com/article/1712-nvidia-dlss/
Still the idea of DLSS has been lucrative, a 50% boost to framerate with only a small cost to image quality. Many people would have gladly taken that compromise to reach higher framerates...
Only today we find out that DLSS is itself a bottleneck to reaching higher framerates.