WxTech,
in principle you are right but I am not sure, it needs testing. First, upscaling can be done by different algorithms and outcome image is different. Second, even upscaling with one algorithm can give different upscaled images if the upscaling is done in one step and if it is done in several steps (scale first to 120% then to 140% then to.. and finally to 200%). To what extent the upscaled image is 'better' or seems 'better' depends, to some degree on the initial image itself. With my experimenting I noticed that some parts of the upscaled texture may look 'better' and some other parts become looking weird or unnatural.I think it needs extensive testing.
On the other hand we have an example of map texture upscaling by CARSMASTER, when he released his 2048 mod long time ago. He took Basarabia original textures and upscaled to 2048. I don't know how he did it but the result was great. I tried to understand by reading those threads...
A good automated processing would be great.
Simply upscaling an image does not add new information, beause the process is merely interpolating. That's why a 2048 texture made from a 1024 will look no better. The game's rendering process does much the same thing when a low resolution texture is shown at an expanded size. To look more detailed, the upscaling process would need to generate essentially fake information.