There aren’t faster GPUs affordable to most consumers, that’s the point. Yes, DLSS is used as a crutch because it’s easier to do AI upscaling than render at a higher resolution.
You don’t need a full engine redesign. UE5 provides tools for PSO bundling and also pre-caching, but you need to use them.
Also good material design and structure helps reduce the number of PSOs needed but again, you need knowledge of how the engine’s materials system works.
If you are interested, this video explains some of the solutions. https://youtube.com/watch?v=i35yf-wh3Bs