I would say what is your scaling in MSFS2020. Anything less than 100 makes the cockpit blurry. For me the guages are clear enought but again the compromise is you will never be as clear as 2D as we all are used to. Hence the right mouse click option they incorporated into VR mode.
If you have the right available bandwidth with VD (using wifi 6) you can make the most of the quality of the stream. That would be the right path to making the VD the best quality you can while balancing the lag time from the VD Desktop stream from the PC. I say turn on the performance overlay in VD in the headset app to figure out what adjustments you make are trending the stream better or worse to push the quality/lag as best as you can.
@Mobias7 I agree the LINK is the best method for bandwidth because you are wired but it was opposite for me. Day and Night. The LINK I was constantly trying to fight it as it had it good and bad days. At times the PC would indicate i dropped to a 2.0 connection instead of 3.0 even when wired directly back to the motherboard. The VD worked for me on a consistent basis and while losing the OTT, I guess the alternative is tweaking the settings in the VD app in the Quest 2. Also using the LINK you have to have the LINK app running as well so is that not overhead as well?
Both (LINK app and VD Desktop) software are responsible for streaming to the headset (one is wired and the other wireless).
With either solution you will most likely have 2 pieces of software running with MSFS2020.
Link = OTT (optional but most will use) and LINK App
VD = VD desktop streamer and SteamVR