I hope this is ok, but I have a couple links to share regarding this "mystery" topic.
Optimizing a Dedicated Server - Steam Support Wiki
oPg Gaming Blog Archive SRCDS Tech: The Rest…
srcds.com forums · Server FPS and Tickrate
To me there are 2 separate issues regarding the role of Server FPS.
First being a stability measurement of the server itself, which some would say translates or means performance (sort of).
Second being the effect of the client(s).
Server side -
FPS is a direct measure of calculating a set number of frames per unit time. This is limited purely by the power of the CPU, clock speed, and related things that would just nerd this up. It would be fair to say that if a server can run at 512, 1k, 2K, etc. at less than 40% usage at 95% confidence level, then the server is stable. This is said explicitly excluding the client phenomenon. Why b/c the aforementioned aspects of the CPU, clock speed, blah blah is dictated by the HARDWARE, OS, applications, etc. (We all know everyone is running different schtuff and some people have noted that and attempted poor comparisons).
So now you have a server that confidently does calculations, b/c that is what these things do, crunch numbers. Those numbers have to be distributed, which is the bandwidth pipe. Think of this as a fire hydrant opened on a hot summer afternoon. It just spews out the gallons of water at the rate dictated by public works, but also the size of that hydrant (and other things not needing mention here).
Now enter the client, which we all know come from all walks of life (i.e., broadband, small band, or w/e). Each client's connection varies so much to travel to the server, we all know this. So here is my quick and dirty analogy to the fire hydrant -- how many hoses can you hook up and still maintain the same output from the hydrant, despite the number and length of each connected hose?
Ideally, you want the hydrant to match those hoses such that everyone is equal, ergo better hig registration or w/e you want to call it, more simply no latency. Nonetheless, there is latency, as the hydrant would have to make to pump more water out to maintain that ideal by turning on a supplemental pump or opening the flood gates on the dam. LOL If it cannot be increased, then the latency will occur.
So then each of those fire engines hooked up to it...they were told that the hydrant would maintain its flow for x hoses, but may in fact ended up w/ some dry lines.
I concur w/ John and some others that client experience varies immensely and that no one can ever really say that one FPS setting is better than another w/o considering the devil in the details -- hardware, network, configuration, bandwidth, on and on...
Apologies for the long windedness. Attempting to make sense of something that is complex, b/c it truly is.
Regards,