The generated frames thing is interesting as it's an obvious example of the whole discussion around halo products (the x080 or x090 cards), "the rich get richer", it takes up a lot of air in the room but is only appropriate for a small vocal proportion of the market.

As you say you need a good framerate to start with before generated frames make sense so either you're already running well with a high tier card and are further able to show off the combination of framerate/resolution/detail level, or running a lower tier card at lower settings turning the graphics down further which can be a very obvious trade off. Less demanding games which are generally online competitive usually wouldn't do as well with any extra latency introduced, and the situation where I've heard it would be a good fit is emulators or any kind of game where the CPU is the limiting factor