Sadly, I think it's the road Firefox is going to take. The things in the ToS are vague, when they could easily be clarified, and that is an act of bad faith towards its users. That might give an opportunity for Mozilla to use some of the things against the userbase.
Nonetheless, I think that it is possible to modificate these cards, to have an upscaling chip inside it. But it would take some effort, which no company will ever do.
Ray Tracing is useless (unless it's for animated movies or movies that use CGI), regular lighting is a lot better for performance, and it's 80% as good as Ray Tracing, in comparison. I use a really bad laptop, yet it is possible to get 30 to 60 FPS, on decently optimized games.
You just made all of the points that I was thinking about.