Lacking some major context on PS5. First, performance modes exists on most game, but that doesn't make the performance modes any good. FF7 Rebirth, even after patches, the PS5 performance mode struggles to hit 50 fps in any semi intensive area. Unless you have a VRR TV, it is jarring. We also have games coming out that are targeting 720p (or less) internal resolution and utilizing different upscale techniques to get them to 1080-1440p. The effectiveness of those techniques varies quite a bit. Hardly any games of the last year or two take advantage of any ray tracing if performance modes are applied. Alan Wake 2 also has a very clear stark contrast between the modes. Performance mode targets (doesn't hold fully, especially on PS5) 60 fps, but every setting is dropped heavily. It targets 847p (and drops below), the ground suddenly makes the PNW look like mountains in NM, shadows drop at about half the draw distance, and the textures take a huge hit.
Probably bigger that this though, is we have had the longest run of cross generation that we have ever had. We have games still coming out today that are coming out on PS4. A 10 year old console still getting new releases. For 9th gen only games (I consider Switch to be its own thing and out of this race... so PS5/XS), we're still at less than 100 games... and a number of those are remakes of older games packaged up to sell again. When we move away from the 8th gen, we will see more of it... or at least very compromised performance modes like FF7 Rebirth.
Even with this, we see the future of 30 fps (with maybe token 60 fps modes like AW2) coming down the pipeline. There is only so much compute in these boxes and UE5 is too taxing to have anything but a bare bones experience at 60FPS with the current hardware. It is possible that when the cross gen finally finishes, that we'll have new hardware to keep 60FPS (10th gen is probably 2027, so only 3 years away). So it may hold... but if maximizing these boxes are it, 30FPS is going to make a comeback.