Respectfully, when it comes to this area, yes, the ROG Ally is. I'm not trying to argue with you, I'm trying to educate you.
Frame generation, on FSR3, is done via async compute. We talk about how "FLOPS aren't everything" but async compute is one of the few places where FLOPS kinda are everything.
A decent guess for NG's power is 1.5 TFLOPS in handheld. How much is the ROG Ally?
Oh, only 5.7x more powerful. It requires running in turbo mode where the battery life is less than an hour. Let's take a look at the exact video you linked to:
It's running in Turbo mode. I wonder how heavy the GPU is loaded up?
98%. Load is actually highly variable, but it tends to top out here. What about before Frame Gen is on?
Again, it's all over the place, dropping as low as 85%, but this is a pretty representative. We can use this to do some basic math that isn't really predictive*, but helps make my point of why this is absolutely useless.
If the ROG Ally is 8.6 TFLOPS, and uses 7% of it's power to run frame gen, and frame gen gives you an extra 10 FPS, how many TFLOPS are being used to do frame gen?
8.7 TFLOPS * 0.07 = 0.602 TFLOPS
NG is 1.5 TFLOPS. So, you would be spending 40% of the GPU's power to generate 10fps. Let's assume you've got a 20fps slideshow. Turn on frame gen. Its not free, it eats 40% of your power. You're down to a native 12fps, with 10 generated extra frames for a net increase in... 2fps. You've gone from 20fps to 22fps - except half your frames look ugly as shit because they're being interpolated at settings way way below AMD recommended settings, and with an increase in latency of 83ms because frame gen always adds one native frame of latency. And when you've knocked frame rate down to 12fps native, that is a shitload of latency.
The math for DLSS3 frame generation is just as bad, and there is no hybrid of FSR and DLSS that somehow runs faster than both. Frame gen might improve, but I hope you see how huge a performance uplift is required before it's viable on a machine as small as NG. In order to hit AMD's recommended minimums for games using frame generation, FG would need to be about 3x as fast as it is now before it would good enough.
But even if it got there, it still would be garbage on low fps games. That's baked into how frame generation works. The slower the native frame rate, the worse that the generated frames look, and the worse the latency, and there is nothing that can ever be done to fix those problems. Reduce those problems, sure, but never eliminate.
The thing you want is magic, and unfortunately, frame generation is just science insufficiently advanced to quality.
* Believe me, I know all your criticisms of this math.. I'm trying to be illustrative here about the cost-benefit analysis, not predictive of actual FSR frame gen performance on NG.