No, but people where actively pursuing it would compete somehow. FSR is an alternative to TAAU (or other own-engine variants). And for that it has some usefullness, in special for older or esports games.
The comparison to DLSS is a faulty one since they are doing different things. DLSS is and will always be far superior to something like FSR (both will keep evolving).
FSR aint all that intresting for consoles (in special AAA exclusives) either.
From what we saw in another comparison, TAAU didn't fare as well in temporal stability(ironically enough) when compared to the higher tier FSR modes. So not quite the unquestionable win for TAAU.
The TAAU comparison that absolutely everybody touts from Alex was genuinely a worst case situation for FSR, as we've seen in all reviews that it fares poorly using low base resolutions. Which shouldn't be terribly surprising. I think it's fairly common consensus that AMD probably shouldn't have even offered Performance mode as an option as it really is just quite bad.
And no, I dont think any comparison to DLSS is faulty. Doing different things doesn't mean they aren't still ultimately aiming for the same thing - lower resolution to improve performance overhead while preserving as much image quality as possible. Despite the common saying, you actually
can compare apples and oranges. Genuinely no rule that you cannot. But there's a difference between comparing things and pretending they are direct competitors. Like, I can compare a GTX3080 and a 3070, no? Doesn't mean I'm saying the 3070 is bad if the 3080 beats it. The 3070 still has its place.
But yea, FSR is gonna be an 'alternative' to certain things, either by direct competition or simply lack of any other option. It could definitely still be useful for console titles, no different than PC.
The jury on how FSR does against lowering resolution and applying sharpening is still out.
I really dont think any such jury is still out, since Hardware Unboxed tested this very specifically and in multiple guises. FSR was inarguably better.
And DLSS 1.0 indeed had overall similar image quality to just lower resolution somewhat(like from 4k to 1800p or so) with a similar performance profile. Not in every title(FFXV would be an exception, for example), but in quite a lot. Adding sharpening ala CAS wasn't the 'equalizer', that was what could actually put it
ahead in cases.
And FSR seems to be a step ahead of this, at least using the Ultra Quality option. Which does make it useful.