This is true to a point. Once you get to 1600/1800 CPI (depends on the sensor used) it is actually detrimental to increase it any further.
At 1800 CPI with a sensitivity of 1.0, you have a 360° turn radius of 9″ (23.1cm)
If you were to increase this to 3500 CPI (generally mouse counts double, or almost double as you go up) your turn radius shrinks to 4¾″ (11.9cm)
You will find that this is not enough movement range to allow for precise control/aiming. Virtually all professional players have at least a 9″ turn radius.
The DPI of the mouse does not mean that you have to move a smaller radius, you can keep the radius at 9" but at the same time you increase the accuracy of the movements within that radius giving you smoother mouse movement. It also allows sensor errors to be more easily ignored by the mouse drivers as it has more data points to work from. Your example of ever decreasing movement circles is only true if you lock your sensitivity to be the same for all mice and assume mice drivers do not have things like error correction.
What matters more than mouse sensitivity (CPI/DPI) is how well that mouse tracks on a surface, and whether or not there is acceleration. All laser sensors suffer from jitter on mouse surfaces to some degree (poor tracking) and have some degree of acceleration.
True and gaming grade mice almost always track the best.
The problem is that you canʼt account for it. You have to be paying attention to what your hand is doing with acceleration enabled, you canʼt just react, because if you react quickly, then you overshoot your target. Or undershoot it, and then try to correct your aim. It adds a level of imprecision that you are always having to fight against, whether you're aware of it or not.
You can account for it, the bigger problem is usually when you jump between games with different acceleration curves. That aside I agree that having it off it better and personally I do prefer no acceleration curves in games but if you cannot disable it (and some games this is the case) you can learn the curve just like you learn the sensitivity settings of your personal mouse.
If you use a wireless mouse, unless itʼs a gaming grade wireless, you are adding further latency on top of that (sometimes considerably more) and if it is a gaming-grade wireless mouse, I hope you like charging batteries all the time
Mine has a rechargeable battery and lasts a few weeks with daily usage.
Edwin