I can confirm that the issue is most definitely that I'm CPU bound.
I'm not convinced you're wrong. If there's a problem somewhere, being mitigated by overclocking your CPU, it doesn't defacto make your CPU 'the' problem.
The only reason I say this is, before my Pico 4U broke, I was happily playing at SteamVR 400%, with similar settings to you ( except driver pre-rendered frames at '1' not '4' because '4' causes a lot more latency for me ) and SS and HMD both at x1.0. Now the Pico is gone and I've just been using my G2 till I can be bothered to setup my Q3, the performance is rubbish. I'm on a 12900K, 5090, 64GB DDR4 ( all stock ), so your system should be faster than mine anyway.
So I know that EDO
can be smooth ( at least to my eyes ) at 400% SteamVR, ergo whatever is wrong for me, is software. I know the Blackwell drivers are

SteamVR gives me the most consistent behaviour but, obviously, is the most clunky to use with all the Steam faff to start the game. OpenComposite is the most performant but doesn't like Win 11 ( at least for me ) so I went back to Win 10 ( which has half the bloatware anyway ).
For me VD and PicoConnect trade blows for 'performance', regardless of settings, except that the PicoConnect is
always better when it comes to wireless. More recently I would've said PicoConnect has well and truly caught up with VD overall and was preferable. It even has a secret setting for OpenXR support.
However, I also note that performance levels which I am comfortable with, seem to be far lower than for other people, no idea why - maybe because I've been using VR since its beginnings when 100ms latency was pretty darn good and nausea was part of the immersion.
QED, my 'perception' might make my comparison irrelevant. That being said I'm actually going to setup the Q3 and give it a go. Can't believe how bad the G2's 'toilet tube' vision is compared with newer headsets, even if the sweet spot is every bit as sharp as for my Pico.