As I understand it, the reason some professional sports photographers don't shoot RAW (or it's less important) is more because they are in an environment where publishing quickly is important, so upload speeds matter and there isn't really much time to postprocess.
I don't know Canon well, but 120fps w/ dual CFExpress + 800-1200 frames buffer is fairly standard on top-end professional sports/wildlife mirrorless cameras these days.
Personally I only shoot at 6fps in continuous for birds because anything faster is usually unnecessary (except for hummingbirds) and just creates more exposures to review/delete in post. I generally preference doing quiet single exposure (Qs) when doing wildlife to avoid any sounds, although since switching to the Z8 it's not really an issue since mirrorless is effectively silent in all modes at fairly open apertures.
I really wish they had raw precapture on the Z8, but i doubt they will do it
but the video mode supports full 8k60 atleast, so only a very tiny crop.
It can only do 8k60 though, not 8k120, so obviously the video pipeline and the C120 pipeline aren't identical.
When you say it doesn't go into DX mode for 11MP, you're correct for C120, but for C60 it /does/ go into DX mode (which captures a 19MP image). How this differs between C60 and C120, I'm not entirely sure in the camera internals. I had thought the resolution reduction is from cropping, but confirmed in the manual that when you enable C120, it's an 11MP photo but is full frame (no cropping).
Obviously this stuff is complex (maybe overly complex) and I haven't delved into it super deeply since I don't need it for my type of photography (and I never do video).
but this suggests that the limitations are not in sensor readout, but processing/saving. Its speculated that its due to heat problems if doing faster than 20fps full raw