This is a really important insight. I remember the moment when it came to me as a revelation, too, and it has, in fact, helped a lot with wardrobe planning.
It makes sense you would want frequent sweater updates. First, for the reasons you say, and second, because they stop looking pristine pretty quickly if one wears them often. I know this too, although with a larger sweater collection, I replace/ upgrade less often.
My most frequent replace/ upgrade items are essentials, by which I mean undies, socks, and sometimes PJs. I do a big overhaul of these every year.
Another item that gets a lot of upgrading is footwear and especially sandals. Sandals because I wear them out in a year quite often and it's a real need to replace. Other footwear because keeping the footwear current is the way to make me feel current.
Denim, as you know. I don't upgrade every year, but I wear it enough that I do wear out a pair of jeans a year (more or less) and when silhouettes change, I like to change my capsule up.
Summer tops -- they wear out.
I tend to hang onto winter shirts/ blouses (mostly classic styles for me), knitwear (the stuff that doesn't self-destruct in a season or two, at least), dresses, and non-denim trousers for much longer. Also blazers -- it's hard for me to let them go and it takes quite a while for me to wear them out. Coats for longer still (they take ages to date and wear pretty well).