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I'm sure some people will demand it. But for 99.9% of the population you don't need 1000Hz content. The main benefit is that whatever framerate your content is it will not have notable delay from the display refresh rate.
For example if you are watching 60Hz video on a 100Hz monitor you will get bad frame pacing. But on a 1000Hz monitor even though it isn't perfectly divisible. the 1/3ms delay isn't perceptible.
VRR can help a lot here, but can fall apart if you have different content at different frame rates. For example a notification pops up and a frame is rendered but then your game finishes its frame and needs to wait until the next refresh cycle. Ideally the compositor would have waited for the game frame before flushing the notification but it doesn't really know how long the game will take to render the next frame.
So really you just need your GPU to be able to composite at 1000Hz, you probably don't need your game to render at 1000Hz. It isn't really going to make much difference.
Basically at this point faster refresh rates just improve frame pacing when multiple things are on screen. Much like VRR does for single sources.
Here's a big part of why they want 1000Hz. You don't need to fully re-render each frame for most cases where 1ms latency is desirable - make a 100 Hz (or even 50 Hz) background and then render a transparent layer over it.
Here is an alternative Piped link(s):
Here's a big part of why they want 1000Hz
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