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Quoted from Selek

I am aware of interpolation and its resulting loss of image quality on LCDs. But what does that have to do with your (until now unsourced) claim that the PC will render an e.g. 1080p frame regardless of the LCD’s resolution and then downscale it to 720p, effectively giving a worse performance than running your LCD in its native resolution?

On some new GPUs you might get worse performance(FPS) if you use lower resolution,because it doesnt use the full performance of the GPU. Like you said on lower resolution theres less pixels to render so it puts the GPU kind of in idle state.
Then again TF2 is so CPU demanding that the difference isnt that big.
Myself got like 15more fps on native resolution when benchmarking demos

I tried schocky’s recommendation of fps_max 600 for 120hz didn’t solve screen tearing for me plus the increased input lag was definitely noticeable. 
It may be be it only works on his system/configuration for some reason.

Quoted from Setsul

[…]
[…]
pc != lcd
The work is done by a hardware upscaler in the monitor, not by the pc. It won’t affect fps at all. The upscaler will add latency though.

@Tseini: idle states are controlled by load not by resolution. Also I’m guessing you changed the resolution in TF2, with the desktop resolution still being native.

Yes thats what i ment since who scales desktop resolution smaller ^^.