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A better way to look at this is frametime.
At 60 FPS/Hz, a single frame is displayed for 16.67ms. At 120 Hz, a single frame is displayed for 8.33ms. At 240 Hz, a single frame is displayed for 4.16ms. A difference of >8ms per frame (60 vs 120) is quite noticeable for many people, and >4ms (120 vs 240) is as well, but the impact is just half as much. So you get diminishing returns pretty quickly.
Now I'm not sure how noticeable 1000 Hz would be to pretty much anyone as I haven't seen a 1000 Hz display in action yet, but you can definitely make a case for 240 Hz and beyond.