I'm not sure I have felt that issue playing 120+ with gsync. I only feel it if the dips are 30fps or more. But generally speaking, once you break 100+, having consistency is more important than the number. I'd rather have 100-105 consistent with gsync, then 144Hz that can dip as low as 90Hz with gsync. You can feel the latter, you're unlikely to feel the former.It depends a lot on the gamer and what they expect out of their experience. I play at a locked 60 in pretty much everything, so a 5 FPS drop is massively noticable to me, especially if it happens erratically and somewhat often. That's the equivalent of a 10 FPS drop at 120 Hz.
It's basically enough to throw off your aim if your reflexes expect a consist level of input-feedback loop. The same would go for me with a 30 FPS title dropping 2-3 FPS from time to time.
It's also why I dislike VRR so much, the input-feedback loop is constantly being thrown off because of the constantly variable framerate. Hence why I consider variable resolutely infinitely better than VRR. And I'll almost always prefer screen tearing with unlocked framerate + no vsync over VRR.
But, as noted most gamers, especially console gamers are unlikely to notice as they don't have the option to adjust the settings of a game to ensure a locked framerate, so variable drops in framerate as long as they aren't too big mostly go unnoticed. Similar to how most console gamers dismissed the benefits of 60 FPS rendering WRT to gameplay and presentation ... until they've spent a good amount of time playing at 60 in a larger variety of genres than just racing games and fighting games.
But, because of the inability to tweak settings, console gamers will always have to live with a game with variable framerate for current games if the developer doesn't prioritize a locked framerate.
Of course, if they do that, the screenshot console warriors will jump on the it in a heartbeat and claim that performance is being left on the table that could have gone into graphics. For them, screenshots are far more important than good gameplay. (I kid...mostly).
Regards,
SB
Both consoles seem fairly okay with holding around their numbers aside from the bugged drops.