Agreed. However virtual screens have been possible to create without the same limitations and apart from the performance degradation from the whole "stream a virtual screen to a real display" setup it works just fine. So I can't see why every single Mac to date would require this hard 8K framebuffer limit.We need to wait for waydabber, the BetterDisplay dev, to test and comment on this. The 7680px width pipe limit has been there for so long it almost seems hardware bound. But then the above changes didn't look like it was possible to be changed via software either, so we will see.
But personally I won't hold high hopes, this is not only low priority for Apple but likely is indeed a hardware ceiling in the SoC display engine.
I would not be surprised that this is just an area that Apple is actively ignoring because it works acceptably on their 5K and 6K 16:9 screens. Hell, even 8K 16:9 would still allow for "looks like 3840x2160" scaling because it doesn't hit the horizontal resolution limit as fast as ultrawides do.