That’s more or less true. NVIDIA knows they’re holding aces with DLSS+Frame Gen which is just strictly superior to FSR and so they’ll probably try to bully the market into accepting current pricing. Better Ray Tracing performance for NVIDIA cards might also be a factor if we’ll start seeing more and more games where it really makes a difference, like Alan Wake 2.
What they end up doing with the rumoured Super series coming next year will be a good indication of where we’re at I think.