I am using this DLSS 3 since 5 Month now I don´s see artifacts or decreased image quality. VSYNC is also very well possible via driver setting. I have limited my sysrtem to 60 fps, cause I have only a 60hz monitor and my sim is bringing the the need constant 30 FPS. And 30 FPS should be doable for most people how even consider getting a Geforce 40xx What do you consider low FPS situations?
And your posted Video is not representitve for MSFS. In a game like Spiderman or fast combat like in DCS or racing I wouldn´t use it neither.
Kind Regards