Perceptually 4:2:0 is an efficient way to throw out unnecessary data, making it a good way to pack video, but at the end of the day it’s still ¼ the color information of a full resolution image. Since video sources are already 4:2:0 this ends up being a clever way to transmit video to a TV, as at the most basic level a higher quality mode would be redundant (post-processing aside). But while this works well for video it also only works well for video; for desktop workloads it significantly degrades the image as the color information needed to drive subpixel-accurate text and GUIs is lost.
In any case, with 4:2:0 4K TVs already on the market, NVIDIA has confirmed that they are enabling 4:2:0 4K output on Kepler cards with their R340 drivers.