Both DLSS and FSR are software leveraging the GPU to do the heavy lifting.

FSR is using HLSL shaders to do its thing whilst DLSS is using nvidia’s tensor cores to run an ML model.

Both solutions are great in different ways but I wouldn’t call FSR limited. If anything, Nvidias is the more limiting given it only works on specific hardware, is proprietary, and requires a lot more from developers to implement it vs FSR which is hardware agnostic and MIT licensed.