I think in this case, they're attempting to keep the "inked" look where lines start and stop. Pixel doubling would result in aliasing (or, rather, a "pixelated" look) and bilinear filtering results in a "blurred" effect. The intended effect with this goal being to give the appearance that the anime was produced in 4K.
Per the name (Deep Learning Super Sampling), DLSS uses a trained neural network to achieve high-quality upsampling. The neural network is trained on representative output of the game at the internal framebuffer resolution and at the target output resolution (with SSAA and such).
The upsampling algorithm in the OP is not based on machine learning but is also fairly domain specific and of limited general applicability.
Probably. Everything seems to work better than NVidia DLSS though. AMD apparently managed to beat it using a pretty standard content aware sharpening algorithm.