The quality improvement is mostly for high resolution reflections like mirrors.
No. It's for all.
GI: gets to apply on dynamic objects and skinned meshes, it gets extended range covering (up to 1000m), and is of higher resolution as it supports Ray Hit, instead of the less accurate Surface Cache. Indoors scenes get a boost in quality as a result of this. Software GI can't do any of this.
Reflections: they also get far more higher resolution (support Hit Ray), they work on dynamic and skinned objects, Software reflections don't support any of this.
Shadows: RT shadows are better than Shadow Maps when not using Nanite
Mirror like reflections are totally possible with SW-Lumen
No. See above.
But even with software lumen devs will be compelled to use hw RT for reflections because software lumen cannot properly replicate reflections on that level?
Yes. See here:
-Better GI quality and precision in open world games, as hardware Lumen can cover a 1000m distance, and has better resolution and less light leaks.
-Better dynamism, as hardware Lumen (global illumination and reflections) support skinned and dynamic objects (people, vehicles, animals, .. etc), software Lumen can't.
-Better interior scenes, as hardware Lumen supports much higher resolution (rays per pixels), which vastly improves light bounce and reflections in interiors. And renders vastly more details.
-Better shadows for horror games that don't rely on Nanite (that use interior scenes), as hardware ray traced shadows allows for a vast number of shadow casting lights, much higher number of shadows, and a vastly better contact hardening, Virtual Shadow Maps can't offer any of that.
-Exotic use cases, translucency, translucent shadows, caustics, .... etc.