I understand that for their flagship production, they want people to draw true 4k all digital. But for most projects, I'd wager that a good AI upscaling and cleanup can take a hand-drawn paper character to a usable 4K plate.
Similarly, I don't think the contractors doing in-between frames need to work in HDR. It should be good enough to upconvert their images from SDR to HDR based on the adjacent HDR keyframes.
As for the background images, I myself already felt frustrated a few times when trying to get my 12MP SDR vacation photos displaying nicely on a 4K HDR TV, so solving that problem might even have a consumer angle.