Ray Tracing is beyond broken in 4.23

I think there may be a bit of a misunderstanding. The only Preview 8 specific issue is that ray traced skylight illumination now does not work reliably with static mode, the only mode which provides correct result when skylight has ray tracing enabled. Prior to Preview 8, Static Skylight mobility mode worked more or less always with Ray Tracing. After Preview 8, it sometimes does not work in a fresh project, and randomly starts to work after performing some steps I am unable to reliably determine/reproduce.
All the other issues mentioned, such incorrect reflection brightness, ray traced skylight illumination being mixed with rasterized skylight diffuse convolution, sky sphere occluding the ray tracing or poor performance are issues that have been around for longer, not just Preview 8.

I am aware of all the realtime raytracing and DRX limitations, but most of the issues above are not consequence of those limitations, and should be resolved.

Also, the performance in 4.23 can be gained back by setting r.RayTracing.InstancedStaticMeshes cvar to 0. It should not be that hard to automatically detect if all ray tracing effects are disabled, and if so, set r.RayTracing.InstancedStaticMeshes to 0 automatically.

Aside from the SIM performance above, here’s the list of things that are not limitations of DXR or Realtime RayTracing in general and should be fixed in order to make RT more usable in UE4:

  1. When Ray Tracing is enabled on Skylight, Skylight mobility should have no impact on the result. Rasterized diffuse convolution and rasterized reflection convolution of the SkyLight should be disabled, as the skylight illumination is already handled by Ray Tracing.

  2. Denoiser should be able to handle more than 1SPP for reflections. If the denoiser can handle more than 1SPP for all the other ray tracing effects - GI, AO, Area Shadows, there’s no reason it should not handle multisampled reflections too.

  3. Ray Traced Skylight illumination should start tracing rays from the distance defined by Sky Distance Threshold value, so that it’s automatically prevented from being occluded by skylight background elements, without requiring user to manage their ray tracing visibility flags explicitly. This will also allow them to still be reflected by ray traced reflections, instead of the blurry skylight reflection probe cache. (Think of environment light being MIS sampled area light sphere with inverted normals with the origin being where the Skylight object is and radius of the sphere being the Sky Distance Threshold)