Yeah, I know most people will say the Deck is already too slow for 800p, so why would it pull 1080p well?
I have two decks, one's got Deck HD, the other doesn't. I render the Deck HD one at 540 native and upscale 2x with FSR. It looks way better than the stock display one and runs better as well. Similar with HZD and other highly demanding games.
That said, 99% of my time on the Deck is spent playing retro games. Does that need 1080p? No. Can it use it? Yes, very much so.
I never pick up the original deck anymore - the Deck HD modded one is just better.