After thinking about this for a while:
I'm not upset about DLSS, even DLSS 3. As a lot of folks here have pointed out - it's frames and having a better experience, no matter how you get there, that should be important. And, in select titles where it's implemented well, DLSS can do that.
But -- my beef: nVidia has locked it to their brand, and furthering that beef, they are now generation locking different parts of it. If I were a developer, I would run far far away from DLSS just because of this - even though nVidia has the lion's share of the market.
That said, not sure you can make a valid comparison between DLSS and FSR. You ~should~ expect DLSS to produce a better result when both are available, because DLSS has super-secret first party access to all parts of the video card from the manufacturer, whereas FSR is a generic solution that is vendor agnostic. That doesn't necessarily make DLSS "better" - try running DLSS on the 7900XTX or Arc 770 and see how it does compared to FSR - and you'd see those charts look a lot different when you have to stick big goose eggs in on your geometric average of frame rates.
Is DLSS exciting? Well, kind of. It's spun off competition, FSR and XeSS, so I think there's something there. I'm not all that excited about it because it requires developer implementation, so it's not universally faster, it has tradeoffs, and it's vendor locked ~and~ generation locked. I just hate these proprietary, locked solutions. As a customer they make me feel trapped by a purchase, not glad I made the purchase, nor do I feel like I'm missing out.
Also, it makes for some really bad marketing claims. The whole "Ada is 3x faster" crap, when that only applies when a game can use DLSS3. And now we are already starting to see hints of that with 5000 series - I just saw a "2.6x faster" rumor, and I can't wait to see that's only when a game can use DLSS4, which will almost certainly be locked to the 5000 series, and they will use that level to only manufacture high end, high cost cards for as long as they can milk it. And that capitalistic milking leaves a really bad taste in my mouth as well - I hate as a customer knowing I'm getting taken advantage of.