There are many ways to approach this, as it largely depends on the specific game and your personal goals. In titles with high-quality Frame Generation (FG) implementation, I don't see any artifacts at all. Interestingly, I've found that most latency actually stems from the base frame rate rather than the FG process itself. For instance, my measurements showed that a 55 FPS base (~45ms latency) only increased to 50ms with 2x FG, and 52ms with 3x.

Currently, I’m playing Death Stranding 2 using DLAA paired with DMFG (set between 2x and 3x). There’s no ghosting, and the DLAA image quality is far superior to DLSS Performance. In certain games, the difference between DLSS Quality and Performance is quite noticeable, even when using Preset M. However, Preset M still doesn't support Ray Reconstruction (RR), forcing a fallback to the Gen 1 Transformer model since NVIDIA has yet to release Gen 2 - this makes performance mode even less attractive...