Okay. Here is what I think I understand from it and having a play with Crysis 3 with sync on and off with fps limit,
basically, anytime you are not exactly matched to the refresh rate of the monitor e.g v sync, then you will have moments where the GPU is out of sync with the monitor, meaning that something weird will happen on screen, either a tear or a frame not updating or whatever
So right now 31fps looks awful because on top of the monitor only getting an update every other frame, you are also getting out of sync frames, further reducing your effective frame rate
If you don't get tearing you'll get hitching every other second or so
With gsync, the monitor is told to update as soon as the gpu is ready, so all of the problem updates go away, so you get the full benefit of every frame the GPU is capable of delivering
sync has to jump from 30 to 60 and back because it's locked to the monitor which is jarring, and low fps looks bad without sync because of these issues, with gsync the transitions are smoother, so the whole experience is smoother
I would imagine a 30fps would still be noticeable, but if drops to say 40 become imperceptible then it really opens up a lot of options in terms of what settings people can get away with using without worrying about keeping 60fps as a minimum