That's fine. It doesn't need to be absolutely perfect, it just needs to be good enough. What isn't good enough is if you can't even use legacy apps because they're too small. What is good enough is if DPI aware apps can have crisp rendering and DPI-unaware apps can render at the correct size on screen but blurry. Totally fine, it's exactly what Windows and macOS (and not X11) do.
You can fix this with extensions... Kind of, anyway. It's really not that trivial. Like if you do DPI virtualization, you need it to take effect across literally everything. Like for example, some applications in X11 will read xrandr information for window placement. To properly handle DPI-unaware applications, you need to be able to present virtualized coordinates to some applications. This is actually one of the easier problems to solve, it goes downhill from there.
You can fix this with extensions... Kind of, anyway. It's really not that trivial. Like if you do DPI virtualization, you need it to take effect across literally everything. Like for example, some applications in X11 will read xrandr information for window placement. To properly handle DPI-unaware applications, you need to be able to present virtualized coordinates to some applications. This is actually one of the easier problems to solve, it goes downhill from there.