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The latter. In fact, the upgrade in image quality on DLSS 4 is absurd, it's much clearer, especially in motion. It's so good that you can pretty much get away with going 1 preset lower and still have superior image quality to the previous model.
For example, DLSS Balanced on 4.0 looks better than DLSS Quality on 3.x. I find this upgrade in image quality way more notable than the multi frame gen, which will only be really relevant to people with 240hz monitors, anyone on 144 or less doesn't really need 3x or x4 FG in my view...
But yeah the DLSS4 model is insane, it solves the "image quality question" of modern games as far as I can tell and I can't wait until the grifters stop talking about nvidia being bad long enough for everyone else to notice how good it is.
He just jumps on the latest drama or bandwagon and repeats reddit takes he doesn't really believe in, like many other gaming channels crying about woke video games and saying the industry is dying every tuesday. I got very tired of this shtick and I stay away from it.
dlss4 is not exclusive for 50x cards, only the multi gen feature is, but every improvement that dlss 4 offers is coming to all rtx cards, and since you have a 4090, framegen was also upgraded to look better and use less vram.
but cyberpunk as an example, the peformance mode in transform DLSS mode which is the new one, can look better in a lot of cases then the quality DLSS of dlss3 in 1440p and even in 1080p which is crazy, cuz dlss in 1080p before was horrible, now its pretty decent, 4k as well ofc and the peformance boost is massive.
Edit: I heard this game later on has open world sections which I assume will be more demanding.