Most of this post is incorrect.
1) Displaying SDR films in hdr mode is clearly resulting in an incorrect image. This is blatantly obvious to see and has been highlighted in a number of reviews.
2) Outputting 1080 films at 2160p is using the Apple TV’s scaler which is overly sharpening the image. This results in a poorer quality image. It’s very noticeable but may not be on some TVs if their in built scaler is just as poor.
3) The Apple TV can only output HDR at a maximum of 60hz so it’s not converting to 120hz. Even if your tv supports 120hz it may not be able to accurately remove a 24fps image from a 60hz signal. Many TVs will just double the 60hz signal and judder will be very apparent.
4) Why would there be any need for people’s screen to go blank for 10 seconds? My £100 Kodi box goes blank for about 1 second when it switches resolution, frame rate or from SDR to HDR. And besides....nobody complains their Blu Ray player is broken when it switches to the native resolution and frame rate.
The point is, Apple sells "experiences" and not products. If blue-ray players had the processing power the A10x possesses, they wouldn't be doing mode switches. Those blue-ray players have however defined your product expectations with the inferior experience they provide (as they have been around for a while), leading you to think the ATV is rather doing something wrong.