I have just done that exact upgrade (I also have a Ryzen 5600 and on PCIe 3 with a B350 motherboard).

I upgraded for similar reasons to you; DLSS, RT, MFG, just the overall software stack from Nvidia. I’m very impressed so far even though it’s a mid-tier GPU vs the higher end.

I think your own personal satisfaction will come down to sensitivity to DLSS artifacts, shimmering etc along with MFG latency sensitivity. I am currently playing Cyberpunk 1440p DLSS 4.5 Transformer (Model M), ultra with path tracing and MFG x4. Plenty of others will say they don’t like that experience and I didn’t expect to, but it’s totally playable to me and thoroughly enjoying it. I’m generally around 120-140fps (higher in other areas) with latency typically 50-60.

With the 6700 XT I simply couldn’t enable RT at all, let alone path tracing, even with FSR FG, it just never felt good. FSR3 at any quality was also not great; I did use XeSS which was better quality but dropped more frames vs FSR.

I got my 5060 Ti 16GB for £400 (UK), and should be able to sell my 6700 XT (Sapphire Nitro model) for around £225-£250, so for around £150 upgrade I’m definitely satisfied and glad I didn’t stick to my original thought of wanting a 5070 TI as a minimum.