My biggest issue with interpolation as opposed to prediction (although currently I'm kind of "opposed" to both) is that with interpolation you buffer frames before they are displayed. So while you are SEEING smoother frame rates, you are FEELING the exact same lag that you would feel at native frame rates. So honestly, what's the use of interpolation, especially at low native frame rates where you can feel input lag.
With frame interpolation, the latency actually goes up compared to native rendering. For example, in pure native, if a game is running at 30fps, a real frame is displayed every 33ms immediately after rendering without any delay. But once we enable frame interpolation, the real frame gets buffered and is displayed "only after" the fake frame is displayed. It does improve visuals but adds lot of latency.
On the contrary, frame prediction doesn't need to buffer a real frame, and hence can display the real frame immediately after rendering without any delay. The fake frames are produced later, properly paced and displayed. Reduces latency compared to frame interpolation.
Edit: (Note: I maybe wrong about frame prediction cos' I'm assuming here Jensen was being honest and not deceptive when he said 50 series is using AI models to predict forward instead of "buffering" and interpolating like CNNs.)
Even if the generated frames are instantly produced, they still need to be paced. If the system generates one fully rendered frame every 20ms, then 3 extra frames would have to be paced every 5ms to have proper cadence. However, if the cost of generated frames is non-zero, let's say 3ms per frame, then that cost adds to the latency of the system, as fully rendered frames are now generated every ~30ms. (20+3+3+3)
Yes it does add latency when we enable 3X FG. The real frames, instead of being presented every 20ms, are now presented every 30ms, but are done so immediately after rendering is complete without any further delay (that is usually associated with buffering the real frame for interpolation). This should give frame prediction a good advantage in latency over frame interpolation.
Assuming all things they said during the presentation were true, 5090 (with 3X FG) should have lesser latency than 4090 (with 1X FG).
The following frame pacing is far from reality. But in an ideal world, this is how I expect it to work with frame prediction. Just the idea: