My grad school research was with an NIH neuroscience lab studying low-level sensory processing that offered a fascinating perspective on what's really going on there! At least for the first few levels above the sense receptors in simpler animal models.

To oversimplify, you can interpret gamma-frequency activity as chunking up temporal sensory inputs into windows. The specific dynamics between excitatory and inhibitory populations in a region of the brain create a gating mechanism where only a fraction of the most stimulated excitatory neurons are able to fire, and therefore pass along a signal downstream, before broadly-tuned inhibitory feedback silences the whole population and the next gamma cycle begins. Information is transmitted deeper into the brain based on the population-level patterns of excitatory activity per brief gamma window, rather than being a simple rate encoding over longer periods of time.

Again, this is an oversimplification, not entirely correct, fails to take other activity into account etc etc, but I'm sharing it as an example of an extant model of brain activity that not only doesn't average out high-frequency dynamics, but explicitly relies on them in a complex nonlinear fashion to model neural activity at the population level at high temporal frequency in a natural way. And it's not completely abstract, you can relate it to observed population firing patterns in, e.g., insect olfactory processing, now the we have the hardware to make accurate high-frequency population recordings.