I used to do this with my computer, if I wanted the highest picture quality I would set YouTube for example on 4K and run it on my 1080p display. This allowed me to bump up the bitrate and since there is always compression on YouTube or Netflix' side and get better image quality more or less.
I will be running a Realme 4K stick on a 1080p TV and I would like to maximize the quality.
Also there might be an advantage to run it through a HDMI splitter that will take a 4K signal and downscale to 1080p, but perhaps a random HDMI splitter doesn't have the algorithm to downscale with good quality.
You can stream 4k content on your tv but your tv will play it in 1080p. Your tv doesn't have enough pixels to display 4k. It will automatically play in the tv's max resolution.