Played another hour or so on XSX and saw maybe 4 or 5 torn frames the whole time so it's way better now.
Torch is perfect now - tried outside in big towns, inside houses, inside caves and no noticeable drops while before I just never used the torch as it tanked the frame rate so far (felt like a 10-20fps drop).
Again super unscientific but stood indoors in a room with no light source (probably best case scenario for hitting 60fps at max res) then took the torch out and couldn't see any noticeable drop in res - if it was still tanking the frame rate to 40-45fps like before you would think the dynamic res would really have to drop to a noticeable degree to keep it at 60fps. Maybe the torch was a bug which is now fixed? If the res has been lowered across the board I certainly can't tell.
Tried 30fps mode and it is hard to play after 60fps. It does look very clean so probably native 4k but definitely not worth it imo. You can't toggle between the two modes and it doesn't let me take screenshots for some reason so I can't compare the draw distance etc so can't really comment there.