You responded to an older version of my post. You probably didn't see the revision since you were working on replying to mine.USB4 isn't a monolithic standard, and alt modes are optional. The difference is that an alt mode is a USB-C extension, not specifically part of the protocol. The other difference is that USB4 can tunnel DP data, using the same techniques that Thunderbolt can. However, much like Thunderbolt, there's no provisions for requiring a specific revision of DisplayPort for tunneling to work. And even if USB4 did require that USB controller chips supported DP2.0, you still need a source of data that operates at that speed for it to do any good. This is the problem. You need the whole chain to support DisplayPort 2.0, not just a single part of it. And if I was a standards body, I wouldn't want to wait for the whole chain to move over before "USB4" products existed.
All that said, because DP2.0 uses a similar PHY layer to USB4, I would expect it does make certain implementations easier.
Make sure you are comparing either bandwidth to bandwidth, or data rate to data rate. You seem to have mixed the two up here. DP1.4's data rate is just under 26Gbps. And Thunderbolt's bandwidth, including the dedicated display signal portion is indeed 40Gbps, while 8Gbps of that is dedicated to. Thunderbolt should get around 32Gbps data rate if all you are doing is carrying a display signal, so a little over 6Gbps more data rate or just shy of 8Gbps more bandwidth. Both DP1.4's PHY layer and Thunderbolt 3/4 both use 8b/10b coding AFAICT, so the bandwidth numbers are comparable in this case since you get the same data rates from the same bandwidth. That said, when talking about tunneled DP data, it's the data rates that are important. Since that sets the limit of the data carried per stream across a USB4 or TB cable.
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