The DS1054Z has intensity grading or am I missing some aspect of it that's being referred to?
It does, although a bit limited. Especially the infinite persistence mode can be useful to spot glitches and judge the presence of jitter and its maximum magnitude, although the limited grading will limit its value to assess which are the most common occuring values or shapes, which can be much easier in scopes with 256 levels, and, especially, in those which use different colors to create a sort of "heat map".
Regarding FFT, perhaps I'm in a minority, but practically speaking I find the FFT feature on pretty much any scope I've used is of limited value. Nice to look at, and occasionally useful, but generally I find it remains unused: I think it's mostly a rather overrated feature for real life use.
The FFT in these Chinese scopes is mostly a "check-box" thing. But look at the FFT available in higher end scopes and it can indeed be useful. My other DSO is a venerable LeCroy 9400 which I must recap, and it has an awesome FFT. True, calculating it can take even 30 seconds (yikes!) but you can get really detail information from it. It shouldn't be difficult for Rigol to replicate that, given the speed offered by the processors in these modern DSOs (the 9400 has a Motorola 68000) but, well, it seems they won't bother.
The 9400 lets you choose the number of points, wether you want the modulus, real or imaginary part, etc. Yep, the Physics background it quite apparent
Although an 8 bit converter has a very limited resolution, a good FFT can help you spot distortion problems, for instance.