Also, just because the screen is 8k doesn’t mean the entire image needs to be rendered at 8k. They could track the eyes and render the focus point at native resolution while the periphery could be reduced (foveated rendering).

What’s the latency like with H265? H264 has ‘zero latency’ mode apparently - but I’d assume that the more advanced the codecs are the more temporal information is required which would increase latency.