It isn't an oversimplification, it is simple science and logic.
Adding additional resolution doesn't just have diminishing returns, you hit a point to where adding additional resolution simply cannot be interpreted by the human eye.
For the average person, a 1080p 50" television at 6.5 feet is already at that threshold.
Unfortunately there are many people out there willing to buy something based on 'specs' with no understand what it really means. If you are looking for a great 50" television, you are much better off going the 1080p route.
But this will continue to get thumbs up because "omgzers it is 4k under 1200 bucks".
and the fact that its probably not a good very TV either( contrast ratio, black level, color accuracy) just adds to the fact that its not a good buy