Threre's a third option here, and that's that AMD cards support XESS on some les (a growing list). XESS might still not be up to DLSS quality but it's better than FS1/2, and at least equal to 2.2 for now. It's a really solid option in Cyberpunk 2077, if FSR 2.1 is 85% of DLSS, then XESS is probably 90-95%. I also don't see the artifacting you're talking about on FSR until you drop to at least balanced at 1080p or performance at 1440p. Balanced 1440p for most les is really solid, if not as great as DLSS is. But XESS is even better and gives the Radeon cards more parity with Nvidia.
DB, you can easily break this down into a few categories to determine what you want on your next GPU:
NVidia chips:
Newest tech
Beats AMD solidly to blowing them away in AI work/stable diffusion
Raytracing king now and for the foreseeable future
Lower power draw (if electric bills hurt)
DLSS is probably the best single piece of tech in terms of improving a single GPU's shelf/life or allowing it to overperform that we've ever seen. It's better than overclocking to squeeze out another 5-15%, that's for sure.
Much more expensive FLOP to FLOP
Also includes less VRAM than AMD
Chipsets historically haven't aged as well as AMD offerings (with the notable exception of the 1080ti).
Great resale value, for what you're buying
AMD GPUs:
Much better performance/price ratio for rasterized gaming (not Raytracing)
Generally at least 4GB more VRAM at the same price point
A much, much better software suite for accessing system settings. Seriously, NVidia's UI looks like it's from 2002.
Arguably more well-rounded set of features (AMD Anti-Lag, Chill, Super Res, Enhanced sync, sharpening) -- None of these are as good as DLSS is though, but they're useful nonetheless
Historically their cards outlive their usual lifespans because of driver optimization
Very capable at the higher end of doing raytracing/AI work.
They run hotter
Use more juice from the wall
For enterprise applications they're way behind Nvidia
A wash for me is drivers, as I feel like neither company can claim they're truly reliable. The /r/nvidia sub just flatly tells people to wait several days before upgrading to new versions now, but AMD's drivers don't seem to have the same magic to give their older cards the huge boosts they used to get (former 290x owner, heyo).
I just built a new rig and went with the 7900XT. I'd say the 7800xt is the sweet spot right now for gaming, though maybe overkill for what you're playing. I decided that VRAM is going to be more of a concern in the future than which upscaler I'm using, as they're already good and likely will only be better in 2-3 years when my card really needs to use them.
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