Oversampling with a DAC is very different from upscaling on a video device. Oversampling is for filtering purposes, and you can go without it but it can make the job more difficult.
Video on the other hand, if you truly disable upscaling, a 1920x1080 TV being fed a 720x480 source (dvd) will only show up on a small portion of the screen. It will be distorted too as DVD sources require stretching/scaling to display properly anyways.
An example of the difference would be the post by navii about his PS3 and its upscaling capabilty. If it is turned off on the PS3 the TV uses its own scaling hardware/algorithm instead of what the PS3 is using. That is a case of preferring one implementation over the other.
That is more akin to comparing different oversampling techniques for a DAC instead of comparing OS/NOS.
A proper analogy with oversampling (44.1KHz to 88.2KHz) would be color correction and image processing inside a TV, which is done at a higher bit depth to prevent artifacts from the process from being displayed.
Upsampling (44.1KHz to 96KHz) would be more like frame rate creation, some people like it, some people hate it, and some are morally opposed to it.