<< (The word "text size" is a bit of a misnomer, as the setting changes the screen resolution.). >>
I strongly disagree with your technical assessment.
Changing SCALED text sizes leaves the inherent resolution of your display at its maximum, natural resolution.
Instead of changing the resolution, when Scaled is selected, TEXT (only) is drawn into an off-screen buffer at a multiple of the 'natural' size, such as 4x the original. Then text is Scaled (with anti-aliasing) back into the 'live' display buffer at a smaller "looks like" size. This intelligent scaling reduces the overall size back to 'normal', while maintaining crisp edges without artifacts like stair-stepping along diagonal edges of characters.
--------
<< You could also click the Advanced button in System Settings > Displays and turn on "Show resolutions as list" to see and select a screen resolution you prefer. >>
Brute-force reducing the screen resolution is a blunt instrument by comparison. Reducing the screen resolution throws away the nuanced, crisp display of text that is possible through full natural resolution plus Scaling.
Apple has not helped Users to understand this process, and its terminology has vacillated back and forth on what is reported as 'actual' resolution and 'looks like' resolution.