You can just not ship DLSS 5 in your game…

I don’t see any need to boycott this, especially not as gamers, as you can just disable DLSS 5 if you don’t like it.

I interpret this statement from New Blood boss as fear that their games without DLSS 5 won’t compete well against those with it available.
I don’t share this fear, as there was often new technology to art stuff more easy, like digital art, electronic music, digital cameras, higher resolutions etc.
It always made the traditional art style more valuable not less, as people are motivated to pay a premium for “authentic” art.

So my conclusion: Art that is targeted at mainstream / big quantity / fast release cycles has benefit in AI and has to use it to stay competitive, but in the other hand mainstream art has always been live-less / unhuman anyway, so I am not very sad about this.
“Real” Art that is done by Artists for themselves not made to be like by as many people as possible will grow in value and maybe even get more popular again as people may get fed up from re-iterating art that works (e.g. pop songs)