Ray tracing mode feels sluggish as hell. Performance mode finally feels the way the game should have at launch. I have to do more comparisons but right now I don’t see any night and day graphically differences between ray tracing and performance. In any case, performance is the way to go.
On console this has been the case with every single game. At this point it feels like there's no reason to sacrifice performance for graphical fidelity, but it's nice to have that option because a future console might be able to do the better graphical options and not sacrifice performance.
I only have this game on PC myself but I can 100% say game has been better optimized.