This is not even a proper backtrack, he keeps calling AI Slop "beautiful" - at best its a poor attempt at PR crisis handling.
Even if it is optional, with the controls that devs will have (as confirmed by interview with Daniel Owen), there is NO WAY to meaningfully adjust the yassification. The argument that this could help with lighting is also extremely far fetched as the AI slop filter 5 does not even have access to in-engine lighting data, just the 2d frame.
Shame on Nvidia for trying to pass this off as anything but a crappy filter, it should have just been part of the game filters in the driver, not besmirch the good name of the excellent upscaler that is DLSS. They need to go back to the drawing board, or ideally, have a deep think about the direction they are going in, from a different viewpoint than filling their own pockets and locking out other vendors from the PC market with their massive market share and proprietary tech. Hell, if this was the early 2000's, there would be an anti-trust investigation launched already.