I apologize for the triple post, but there's an interesting development I wanted to share (and it's quite a big one, completely unrelated to the previous post).
I've found (ordered, received and tested) a USB-powered HDMI 2.0 (with 4K@60Hz support) HDMI splitter on Amazon/eBay which does exactly two things:
1) Pretends to be a 4K & HDR-enabled 52" display (it can also pretend to be a 1080p display or pass through your monitor's EDID to the Mac, but it'd defeat the purpose of the exercise)
2) Downscales the 4K input to 1080p. Since the Mac now thinks it's connected to a 4K display, it also turns on HiDPi scaling settings (like on a MacBook's internal screen - "More Space" and stuff like that instead of numerical resolutions, basically).
Pros:
1) 4K supersampling for my PS5 (not sure whether it does so for every game on 1080p, but it will be forced to do so).
2) Presents an EDID of a screen with speakers! My Mac and my gaming consoles are connected to a 4x1 HDMI switch with a built-in audio extractor. I plug my headphones into it when I play console games since they just assume that the screen has audio support, however, I have to plug the headphones back into the Mac itself when going back to the computer since the Mac knows my monitor doesn't have speakers (when I was using a different monitor with speakers on it with my old Mac, this extractor worked fine, so it's definitely an EDID thing). Well, not anymore! I can now select the monitor as an audio output even though it doesn't have speakers.
3) Why we're all here: seems to fix my shimmering/flickering issues in grey colored areas / light colored issues. I think the issue originated from EDID or HDMI handshaking issues, which are probably resolved by this device.
http://color.aurlien.net/ is the site I used to test all sorts of colors and so far wasn't able to see any shimmer/flicker on any of the color profiles I've tried.
4) Can't feel any additional latency when using the OS (can't comment on gaming results, didn't have a chance to check it out yet, just that the PS5 works with the device at all).
Cons:
1) It costs money (about $30) - a GPU driver update is free and isn't a workaround that involves extra cables and extra power.
2) An active device, requires 5V@some probably pretty low amperage of power (delivered through a Micro USB cable that's included in the box and either your Mac's USB port or a phone charger, there isn't one in the box though - just like with a new iPhone! lol)
3) Was hard to get it to work initially (my monitor was saying "input not supported" when using my Mac, worked fine with my PS5). The issue was with my Kingston USB C hub, turns out: when plugged into the Mac mini itself it works okay (Mac mini -> HDMI switch -> HDMI splitter -> monitor). I'll blame this on my hub, though.
4)
Likely doesn't downscale to 1440p, effectively making it useless as a HiDPi solution (I don't really see a point of HiDPi on a 1080p screen, though maybe it's just me). It's either 4K or 1440p at the output, no in-between. Now, there's a firmware update tool (I haven't checked it but chances are it's a CLI windows-only tool, not sure though, I'll update this post if it's a Mac-compatible thing, but I reeeeally doubt it) and some comments indicate that the manufacturer actually listens to feature requests, so in case the output can be reconfigured programmatically to 1440p (meaning if the output circuitry supports it, which I just don't know a way of telling, I don't feel like opening it up) then maybe one can request to replace the 1080p downscaling to 1440p downscaling. Overall, I'd suggest you do your own research into this, I didn't really look into 1440p support since I have no use for it personally.
5) Affects the color calibration/colors in general ever so slightly. I'd say it's a very minor and a barely perceptible effect, but if you work with graphics/colors professionally, it's a different thing - I'm not confident suggesting this to you, in such a case.
What I'm unable to test:
1) The color space (RGB or not) - my cheap monitor doesn't show the kind of input it's getting
2) HDR - PS5 recognizes my monitor as HDR-capable (so does the Mac) and that's about it, obviously the results look washed out if I turn it on
3) High refresh rate / variable refresh rate: again, I only have a simple 1080p@60Hz AOC monitor so I can't check.
4) 1440p - see above.
https://www.amazon.com/gp/product/B07VP37KMB/
The link is for the device that I bought (non-affiliated link, if anyone cares, I'm just a guy on a forum), however it seems to be a generic Chinese scaler/splitter I think? I did get an ad for the same thing from a different manufacturer (I guess it just had a different logo and a different distributor but was made in the same factory, idk) and it was a dollar or two cheaper but had longer shipping so you might want to do some research. One of the comments in the Q&A section from the manufacturer says that it doesn't work with only 1 video output but it works fine for me.
For reference, I'm using a 4:4:4 HDMI 2.0 (4k@60Hz-supporting) HDMI switch and 3 decent cables (all support 18Gbps, should be enough for 4K@60 and it looks like it works fine).
I'll update this post if I notice the shimmer somewhere again, but so far it seems to be fine. I have no skin in the game so if the device doesn't work for you for some reason - I'm sorry, just sharing my (n = 1) success story here and I can't guarantee it'll help your case.
If y'all have any questions or want me to test something/record a video/etc - do tell, I'll try to find a minute in the next couple of days.
EDIT: it seems that the downscaler makes the overall image a
smidge softer than it is when I connect directly to the Mac, not sure whether it is actually the case or just my feeling. It now looks like the output I used to get from my Intel MBP (2017) that I traded in for this M1 mini. I don't think staring at my monitor up close in glasses is a normal use case, so with around 2 feet between my face and the screen it looks just fine.
EDIT 2: using M1MacTimings.sh (a script I found on GitHub) I found a curious thing with this device - my monitor is now treated as disp0 (not dispext0). Not sure what's up here - maybe it's just that I stopped using a USB C hub, not entirely certain. 2048x1152 also seems like a good resolution for a 1080p monitor (everything is ever-so-slightly smaller, but not to a point where the text becomes less readable in any significant way).
EDIT 3: after messing around with it some more and using RDM I've been able to verify that I still have the shimmer/flickering when using the default 1080p@60Hz mode (not downscaled from 4K). This splitter, however, allows me to access a 1080p@59.94Hz mode, which I'd expect to look identical to the previous one - yet it doesn't. It resolves 99% of the flicker for me. The final 1080p mode available is a downscaled 4K (using HiDPI) - it has deeper blacks (which might actually be a bit of a detriment, not sure yet) and slightly blurrier fonts. These fonts are what I'm used to since they look like what I'd get from my old MBP. The native M1 output is noticeably sharper and has better font rendering, sure, but it also produces the unpleasant artifacts which are really distracting. I have to say that light mode works a lot better than dark mode when using this output type (I didn't use dark mode on my MBP with this monitor due to blurry fonts as well). I have to conclude that most likely my MBP was performing the same HiDPI downscaling behind the scenes, since the output looks so similar. The downscaling process itself might also be a kind of a low-pass filter in a way, masking the high-frequency (in terms of pixel density, I guess? not really sure what's the best way to say this) noise/flicker. That's all I have for now.
FINAL EDIT: Well, not sure what to think after using this adapter for a few days. I feel like my Mac is ever so slightly warmer (rendering @ 4K and downscaling vs rendering natively = additional CPU/GPU load)and the screen contrast is a little off (I prefer the way it looks with my PS5, but that's a personal thing). I guess my final educated guess of a conclusion will be that the downscaling process (4K->1080p) acts as a low-pass filter (meaning that the noise is likely still present in the 4K signal that the Mac outputs, but gets lost when downscaling the signal because the size of the noise in pixels is really small). I'd say that this still makes the screen somewhat easier on the eyes (the flicker was really unpleasant), but obviously doesn't eliminate the issue. I think that this is definitely an M1 issue (see marts2007's video below), hopefully something GPU driver-related (since rendering itself works fine, as demonstrated by using SideCar and not having those issues on my iPad's screen), and I'm hoping Apple fixes it soon - I can't afford to return or exchange it for now and I otherwise prefer this to my previous Mac.
I'm also going to keep this splitter (after all, the device itself is not faulty and at some point might come in handy for other uses to me), but I don't recommend you get it as a solution to this problem - only buy it if you're up to trying a new approach without a promise of the problem being solved, which is a shaky value proposition at thirty bucks I'd say.