That's why you should prefer LPIPS to PSNR. LPIPS is a learned metric that uses subjective human input.

That said, it's limited due to the training set, iirc. So we still use PSNR regularly — it's an easily-understood metric with widely-understood limitations, which is in practice not too bad. Devil you know, etc.

Ironically when we did compression quality evaluations, me and my colleague found that PSNR way better matches our perception of quality, than LPIPS or FLIP. Our assumption is that LPIPS is biased towards quality artifacts that is not representative of compression quality artifacts.

It depends on the target audience. Many people prefer the oversharpened content. I always find it incredible how so many people never change the oversharpened and oversaturated default settings on TVs.