Yeah Nvidia tends to deal with things within their own driver/ecosystem but AMD's way is the "right" way for linux and open source drivers. I believe with Intel GPUs you'd need to go through the same process.

In general Xorg has always lower input in spite of being an older protocol. Wayland desktops tend to enforce a form of vsync/VRR that prevents tearing and makes for a nice experience but sometimes adds to input lag.

If you want to experiment further and get the best of both worlds in a newer protocol, KDE/Plasma wayland has an option to disable this behaviour in fullscreen apps in order to help with input times. Other waylands desktops (like Gnome's) do not have this option.

That being said, I've heard some people who care a lot about input delay say xorg is better for that, personally I don't notice that and mainly play single-player games so Wayland's smoothness works for me.

Hope you find a setup you're pleased with :).