Why yes, downsampling using nVidia's Dynamic Super Resolution (DSR) should indeed exactly simulate a higher resolution load on your GPU so you can decide if games would be playable there on a new monitor. As has been said the 1070 is powerful enough that you shouldn't notice much of a performance difference. The problem with actually using DSR is the antialiasing isn't very good--sadly it's just ordered grid (OGSS) which averages every pixel. It blurs things just slightly but the real problem is nearly vertical or horizontal lines are only poorly antialiased because the average is only one middle shade.
So how do you make it look much better and put a much higher load on your GPU (which would otherwise be wasted in leaving performance unused on the table) at low resolution? Rotated grid (RGSS) looks perfect and is the way the old 3Dfx cards used to do it--unfortunately it's pretty difficult to get with nVidia, which seems to prefer to multisample everything (MSAA) and apply supersampling only to transparencies. You used to be able to use a third-party hack to enable nVidia's Sparse Grid Supersampling (SGSSAA) which looks much better than DSR and has less performance impact than full SSAA. I notice there's a hack to enable supersampling for VR applications but I'm not sure which kind that gets.
So crank up those settings until you see 100% load on the GPU, before you decide to get a new monitor.